Intel and TSMC have taken an important step in their chip manufacturing partnership, which has been on the agenda for a long time. The two giant companies have reached a preliminary agreement to establish a joint venture covering Intel manufacturing facilities in the US. This move is considered both as a result of Intel’s efforts to increase its manufacturing capacity and as part of the US’s strategy to regain global leadership in chip manufacturing.

Intel and TSMC to collaborate in the chip sector

According to Reuters, the agreement has not yet been officially announced, but TSMC is expected to have a 20 percent stake in the new joint venture. It is not clear who will own the remaining 80 percent. However, it is claimed that TSMC held investment talks with US-based chip design companies such as AMD, Broadcom, Nvidia and Qualcomm earlier in the year.

It is stated that the US government also plays an active role behind this partnership. The White House and the Department of Commerce are encouraging this collaboration to overcome the manufacturing and operational difficulties Intel has experienced in recent years.

The US administration is not keen on selling Intel’s production facilities entirely to a foreign company, especially TSMC. For this reason, a joint venture stands out as the most likely solution. However, it remains unclear how the joint venture will work exactly and how much say TSMC will have in Intel’s facilities.

Most of these facilities can only produce Intel processors. The limited number of facilities that can use Intel’s advanced 18A production process also raises questions.

Following this development, there was movement in the financial markets. Intel shares rose by approximately 7 percent, partially compensating for their losses in recent weeks. What do you think about this? You can share your views with us in the comments section below.