Intel, TSMC Eye Joint Venture Amid U.S. Chip Industry Crisis

Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) are in early talks to form a joint venture to manage Intel’s U.S. chip factories, according to The Information. TSMC is expected to take a 20% stake in the new entity. The Biden administration, including officials from the White House and Department of Commerce, has reportedly pushed for this deal in an effort to stabilize Intel’s operations.

The discussions come as Intel struggles to regain competitiveness in the global semiconductor industry. The company has invested heavily in its chip manufacturing business but has failed to meet the standards set by top foundries like TSMC. Intel’s manufacturing delays and quality issues have driven clients away, and its foundry services have faced criticism for underperforming.

In 2024, Intel posted a staggering net loss of $18.8 billion—its first annual loss since 1986—amid major write-downs. The stock plummeted 60% during the year, significantly underperforming the S&P 500’s 23% gain. However, shares have rebounded slightly in 2025, up around 12% year-to-date.

To spearhead its turnaround, Intel appointed Lip-Bu Tan as CEO in March. Tan, a veteran in the semiconductor sector and former Intel board member, is tasked with leading the company through a transformative phase driven by AI and advanced chipmaking.

Meanwhile, TSMC is deepening its U.S. footprint. The world’s leading chip foundry announced plans to invest $100 billion to build five additional chip facilities in the United States. In March, TSMC reportedly approached Nvidia, AMD, and Broadcom to take part in a similar joint venture initiative, following U.S. government requests for greater industry cooperation.

Intel and TSMC have yet to comment on the ongoing negotiations.