Intel Discussing a Semiconductor Manufacturing Joint Venture with TSMC, Sources Claim
Intel, now under new leadership, may be looking to form a closer alliance with Taiwan Semiconductor (TSMC) as it seeks to shore up its finances and rid itself of “non-core” businesses — with rumors circulating that the pair are to launch a joint venture to take ownership of Intel’s US semiconductor fabs.
Two unnamed sources “involved in the discussions” have gone on-record with The Information to claim that Intel and TSMC are in the early stages of discussions to launch a joint venture that would take control of Intel’s US semiconductor fabrication facilities. Under the rumored terms, TSMC would take a 20 percent share of the joint venture with Intel — and, potentially, outside capital investors — taking the remainder.
New Intel CEO Lip-Bu Tan promised “a new era” — and that may include moving manufacturing to a joint venture with TSMC. (📷: Intel)
The report comes as Intel seeks to right its ship under the new leadership of incoming chief executive officer Lip-Bu Tan, who promised Intel Vision 2025 attendees he would “return [to] our roots, into an engineering-first company” after having “fallen short of [customers] expectations” in recent years. As part of that, Tan confirmed that the company would be divesting itself of unnamed “non-core” business divisions — after having spun out its venture capital arm earlier this year.
It also follows reports from February that TSMC, the world’s largest independent semiconductor foundry company, was interested in picking up Intel’s manufacturing business — while Broadcom was named as sniffing around its chip design and marketing divisions. Long-term Intel rival AMD, meanwhile, has long since sold off its fabrication facilities, a move that resulted in the creation of TSMC rival GlobalFoundries.
A deal with TSMC to form a joint venture under which Intel’s US manufacturing — but not, the sources suggest, its international fabs — would operate doesn’t necessarily mean Intel is following AMD and going fabless, but it would make such a move easier: AMD, after all, retained a stake in GlobalFoundries and its predecessor before finally selling up entirely and going wholly fabless.
Neither Intel nor TSMC have provided comment on the rumor.
Main article image courtesyof Taiwan Semiconductor Manufacturing Corp.
