Taiwan Semiconductor Manufacturing Company (TSMC) is planning a major move. The chipmaker is reportedly proposing a joint venture with Nvidia, Advanced Micro Devices (AMD), and Broadcom (AVGO) to operate Intel’s semiconductor foundries, according to Reuters.

Qualcomm has also apparently received the proposal. TSMC previously pledged $100 billion in developing the U.S. semiconductor production. This joint venture could be a major game changer in the market, especially with the latest tensions amid the escalating trade war between the U.S. and China, especially when it comes to semiconductors.

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It is still early in deal and venture talks, which means that TSMC would only own a 50% share in the business. The Trump administration is a supporter of TSMC’s latest operations, so the U.S. regulatory clearance worries about foreign control of Intel’s production operations may be dealt with quickly.

In February, Nvidia revealed its earnings for fiscal year 2025, making it the world’s second most valuable company only behind Apple.

What is TSMC?

TSMC (Taiwan Semiconductor Manufacturing Company) is the world’s largest semiconductor foundry, founded in 1987 and based in Taiwan. It specializes in manufacturing chips designed by other companies, such as Apple, NVIDIA, and AMD. TSMC plays a critical role in producing advanced microchips for various industries, including electronics, automotive, and telecommunications.

Known for its cutting-edge technologies, TSMC leads in advanced nodes like 5nm and 3nm processes. The company has a dominant market share and is expanding its capacity globally, including building a new plant in Arizona. TSMC is essential to the global tech ecosystem and semiconductor supply chain.

What are semiconductors?

Semiconductors, primarily silicon, are essential materials in chip manufacturing. They are used to create integrated circuits (ICs) that power electronic devices. Transistors, the core components in chips, act as switches to control electrical signals, enabling data processing and storage.

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The manufacturing process involves layering materials onto a silicon wafer, with each layer etched using photolithography to form intricate transistor patterns. As technology advances, smaller process nodes (e.g., 7nm, 5nm, 3nm) are developed to increase chip performance and energy efficiency. Companies like TSMC, Intel, and Samsung lead the industry in producing cutting-edge semiconductor chips for various applications.