Intel and TSMC Eye Joint Venture to Operate U.S. Chip Plants Amid Recovery Efforts:

Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) have reached a preliminary agreement to form a joint venture focused on managing Intel’s chip factories in the U.S., according to a report by The Information. TSMC is expected to acquire a 20% stake in the new entity.

Sources involved in the discussions say the initiative comes amid pressure from the White House and the U.S. Department of Commerce to resolve Intel’s ongoing financial and operational difficulties.

Background: Intel’s Struggles and Missed Opportunities

Intel has faced growing challenges in recent years. In 2024, the company posted a net loss of $18.8 billion—its first annual loss since 1986—driven by impairments and delays in chip production. The company’s stock plummeted 60% during the same year, although it has rebounded slightly in 2025 with a 12% gain.

Intel has also struggled to compete with TSMC in manufacturing chips for external clients, falling behind in customer service, quality control, and innovation. Former Intel executives have pointed to repeated test failures and service delays as key issues.

Strategic Leadership and Industry Partnerships

To help steer the company back on track, Intel recently appointed Lip-Bu Tan, a veteran of the semiconductor industry and former board member, as CEO. Meanwhile, TSMC was reportedly approached by the U.S. government to help stabilize Intel and even pitched Nvidia, AMD, and Broadcom for stakes in the venture.

While neither Intel nor TSMC have publicly commented on the deal, it reflects a larger effort by the Biden administration to boost domestic chip production and reduce reliance on foreign supply chains.

TSMC’s $100 Billion U.S. Investment Plan

In a related development, TSMC recently announced plans to invest $100 billion in the U.S., including the construction of five additional semiconductor facilities. The move underlines its commitment to expanding global capacity and reinforcing its leadership in chip manufacturing.