Taiwan Semiconductor Manufacturing Co. (TSMC) is in discussions with Nvidia, AMD, and Broadcom regarding a joint venture to manage Intel’s foundry division. TSMC aims to operate but will maintain a stake of no more than 50% to address U.S. government concerns.
Qualcomm had been considered for investment but has withdrawn from previous discussions about acquiring parts of Intel. Negotiations continue following TSMC’s announcement of a $100 billion investment plan for new chip facilities in the U.S.
Intel Foundry Challenges
Intel reported an $18.8 billion net loss in 2024, its first loss since 1986. Any agreement will require approval from the U.S. government, and there are complexities regarding technology and intellectual property.
TSMC is carefully navigating discussions with Nvidia, AMD, and Broadcom over the future management of Intel’s foundry business. The approach is strategic—by limiting its stake to 50% or less, concerns from Washington are being addressed while still maintaining control. Qualcomm’s exit from earlier negotiations simplifies matters, reducing the number of corporate interests at play, though it also limits external funding options.
The negotiations are coming at a time when vast amounts of capital are being deployed to expand production. With TSMC having already committed $100 billion towards new facilities in the U.S., any move to take on part of Intel’s foundry operations is being weighed alongside existing expansion plans. The timing matters. Given the scale of Intel’s reported loss in 2024—its first in decades—pressure is mounting to structure a deal that Washington will sign off on without hesitation.
Any agreement here will need to satisfy multiple conditions. There are regulatory hurdles to clear, particularly regarding control of sensitive technology and ownership of intellectual property. National security considerations will factor into the discussions, meaning that even if terms are finalised between the companies, external approvals will add another layer of complexity.
Regulatory And Strategic Considerations
Washington’s stance on semiconductor manufacturing is well known. Given recent efforts to bolster domestic chip production, an alliance involving multiple firms may stand a better chance of gaining support compared to a deal where a single overseas company assumes control. TSMC’s approach of partnering with multiple firms addresses this directly, making it harder for regulatory authorities to reject the proposal outright.
With Intel’s financial situation well documented, expectations are that urgency will increase. The longer negotiations continue without a resolution, the greater the uncertainty surrounding the foundry business. If existing discussions lead to an agreement, the structure of the deal will need to reflect both financial and geopolitical realities. Those following these developments must watch closely for any signals from regulatory bodies, as well as adjustments to the terms of the proposed joint venture.
