Intel (INTC) has reportedly reached out to Taiwan Semiconductor Manufacturing Company (TSMC) about a possible investment or manufacturing partnership, according to a Wall Street Journal report citing people familiar with the matter.
This news comes amid a flurry of other Intel funding moves: Nvidia recently invested $5 billion for a 4% stake, SoftBank poured in $2 billion, and the U.S. government itself holds 10% after a direct stake.
What Intel Is Up To
Why TSMC?: Intel’s foundry ambitions have struggled to gain traction. Partnering with or investing in TSMC could give it access to proven manufacturing scale and expertise. The WSJ report says Intel is exploring ways to bring in external partners to support its turnaround.
Apple in the mix: Intel has also approached Apple for a potential investment, per Bloomberg and other sources. While Apple normally relies on TSMC, diversifying its chip supply chain amid geopolitical risk might make this interesting.
Recent backing helps the case: The momentum behind Intel’s revival has grown with its recent financing: Nvidia’s $5B injection, SoftBank’s earlier funding, and the U.S. government’s backing.
Historical talks: Earlier this year, there were reports that Intel and TSMC had discussed forming a joint venture, with TSMC taking as much as 20% in a new foundry entity.
Big challenges ahead: Even with this news, Intel faces hurdles: integrating technology, aligning manufacturing strategies, negotiating IP rights, and proving that its foundry business can compete with TSMC’s maturity and cost efficiency.
Intel is showing its hand, it’s no longer just asking for survival funds, but courting partners to rebuild its foundry strength. If either TSMC or Apple comes on board, it could be a game-changer. But this is still early stage — how deals are structured, who controls IP, and how the economics stack up will determine whether Intel’s revival becomes real or remains hopeful.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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