[News] TSMC Reportedly Rallies U.S. Chip Titans for Intel Foundry JV, Including NVIDIA, Broadcom and AMD

Is the new U.S. Chip National Team in the making? According to Reuters, TSMC, after an additional $100 billion in the American soil on March 3rd, has reportedly approached NVIDIA, AMD, Broadcom, and Qualcomm about investing in a joint venture to run Intel’s foundry operations.

The report suggests that TSMC would manage the division but hold less than a 50% stake. Notably, the Taiwanese foundry giant wants joint venture investors to also be Intel’s advanced node customers, as per the report.

18A Could Remain a Dispute in the Talks

It is worth noting that NVIDIA and Broadcom are already testing Intel’s 18A process, while AMD is assessing its suitability, as highlighted by Reuters.

However, the node remains a sticking point in the two parties’ negotiations, as noted by Reuters. In February, Intel executives reportedly told TSMC that 18A surpasses the latter’s 2nm process.

Despite concerns over potential delays, Intel stated that Panther Lake will begin production in the second half of 2025, which is expected to be fabricated with Team Blue’s 18A node.

According to Tom’s Hardware and information provided by Seeking Alpha, as Intel initially aimed to eliminate its reliance on TSMC a year ago, it would no longer be the plan. Tom’s Hardware notes that Intel currently has 30% of its wafers outsourced, and it hails TSMC as a great supplier.

The parties involved declined to comment, as per Reuters.

Several companies have shown interest in buying parts of Intel, but sources cited by Reuters say Intel refuses to separate its chip design unit from the foundry. Qualcomm has dropped earlier talks to acquire all or part of Intel, the sources add.

Other Challenges Ahead

Any deal, with an unknown value, would need U.S. approval to keep Intel’s foundry from full foreign ownership, according to Reuters. Additionally, there are still quite a few challenges ahead for the deal, as suggested by Reuters.

Apart from the mixed opinions on the matter from Intel’s board, the report notes that any agreement would be complex and costly, as Intel and TSMC use different processes, chemicals, and equipment. On the other hand, Intel’s past partnerships with UMC and Tower Semiconductor could set a precedent, but trade secret concerns remain.

Read more

• [News] TSMC’s $100B U.S. Bet: Six Big Questions Behind the Largest Foreign Investment in U.S. History
• [News] Intel Reportedly Has 30% Wafers Outsourced, Hails TSMC as a Great Supplier

(Photo credit: Intel)