TSMC, Intel to enter joint venture to make microchips? What we know and don’t
Taiwan Semiconductor Manufacturing Co. and Intel recently discussed forming a joint venture to manufacture chips together, according to a report unconfirmed by either company.
The move would have big Arizona implications if confirmed.
Both companies have major operations in Arizona — TSMC at its $165 billion Phoenix complex and Intel in Chandler. Neither company has commented on the report made by The Information, a business publication, which indicated the federal government has been involved with the aim of rejuvenating Intel’s chipmaking business.
TSMC employs about 3,000 people in Arizona, with Intel closer to 12,000 despite recent layoffs
Assuming the report is accurate, TSMC would take a 20% stake in the rumored venture as compensation for providing manufacturing know how and training for Intel employees. The report didn’t say if the other 80% of the venture would be owned by Intel alone or with other semiconductor companies.
Rumors about a possible collaboration involving TSMC and Intel have circulated before. The companies are rivals, and it’s not clear how a venture would operate, if it’s even in the works.
Intel has been the subject of other recent speculation, including a report that the company might split into two. Intel lost $18.8 billion in 2024, while TSMC logged a profit of around $35 billion for the year, and the company recently began commercial production of advanced chips at its north Phoenix site.