Intel and Taiwan Semiconductor Manufacturing Co have reached a primary agreement to form a common adventure to operate the U.S. chipmaker’s manufacturers, the Information reported on Thursday, citing two people involved in the conversations.
TSMC, the world’s largest contract chipmaker, will take a 20% stake in the new company, the report said.
The White House and Commerce department officers have been pressing TSMC and Intel to strike a deal to resolve the long-going extremity at Intel, the report added.
Intel and TSMC declined to comment, while the White House didn’t respond to a Reuters request for comment.
Reporters reported in March that TSMC had pitched Nvidia, Advanced Micro bias and Broadcom to take stakes in a common adventure that would operate Intel’s manufactories, after the U.S. administration requested the Taiwanese chip making mammoth to help turn around the worried U.S. icon.
Intel in March appointed former board member and chip assiduity stager Lip- Bu Tan as its CEO to revive its fortunes after it missed out on the artificial intelligence- driven semiconductor smash while furrowing billions of bones into erecting out its chip- making business.
The company’s efforts to manufacture chips for external guests have faced challenges as it fell suddenly from furnishing the position of client and specialized service as rival TSMC, leading to holdbacks and failed tests, former directors have told Reporters.
Intel reported 2024 net loss of $18.8 billion, its first since 1986, driven by large impairments.
Shares of the company lost 60% of their value in 2024, compared with an over 23% rise in the standard S&P 500 indicator.
The shares have recovered some of those losses this time and are over nearly 12%.
Last month, TSMC said at a press event that it plans to make a fresh $100 billion investment in the U.S. that involves erecting five fresh chip installations.
