Taiwan's TSMC, the world's largest foundry (contract semiconductor manufacturing) corporations, is considering acquiring and operating a stake in the factories of the U.S. semiconductor corporation Intel at the request of former President Donald Trump, Bloomberg reported on the 14th.
Bloomberg, citing industry insiders, noted that the Trump team recently proposed collaboration options with Intel during talks with TSMC representatives, and TSMC has accepted this. However, it is unclear whether Intel is positive about the transaction with TSMC.
The source stated that discussions about collaboration between TSMC and Intel are very preliminary ideas, and it has not yet been determined how the two corporations will formalize their partnership, ultimately hoping that TSMC will operate Intel's U.S. semiconductor factories.
They also mentioned that this discussion could include acquiring Intel equity through support from major U.S. semiconductor design corporations and the U.S. government.
Earlier that day, Taiwanese media, including China Times, reported that the Trump administration is pressuring TSMC to collaborate with Intel and recently proposed three options: constructing TSMC's advanced packaging factory in the U.S., investing in Intel's foundry alongside the U.S. government and various partners, and directly accepting packaging orders related to Intel's U.S. clients.
Reuters pointed out that if the TSMC-Intel equity transaction is completed, it could serve as a 'lifeline' for Intel, which has been struggling with its management. Once a leader in the global semiconductor industry, Intel is suffering a decline in performance while struggling in competition with artificial intelligence (AI) chip manufacturers like Nvidia, failing to respond to changes centered around mobile technologies like smartphones. Last year, it announced a massive restructuring plan that involved laying off 15% of its entire workforce.
Brian Jacobson, chief economist at Annex Wealth Management, said, 'Combining TSMC's expertise and engineers with Intel's infrastructure would help kickstart President Trump's dream of making the U.S. the center of the semiconductor industry.'
In relation to this, TSMC and Intel declined to comment. According to Reuters, a White House official said that while the Trump administration supports foreign corporations that invest in and build factories in the U.S., it is 'unlikely' to support foreign corporations that operate Intel factories.