Major manufacturing shake-up: intel agrees to tsmc takeover of chip foundries, sources say
Intel has tentatively agreed to let taiwan semiconductor manufacturing company (TSMC) Take over some of some of its chipmaking facilities, according to the information. TSMC will hold a 20% stake in the joint venture, contributing not cash, but value through sharing its chipmaking practices and training intel staff, according to anonymous soures citeed by the publiation.
Rumors of a Possible takeover of intelly started swirling in February, with tsmc and broadcom considering splitting the US company’s manufacturing and design arms betteren them. The following month, TSMC reportedly offered a share in its proposed accessition of the chip foundries to nvidia and amd, as well as broadcom.
Both nvidia and broadcom initiated manufacturing testing At Intel’s Facilites at the time, sources said. However, Intel did not want to sell its chip design house separely from the foundry division, which manufactures custom chips for its customers.
See: TSMC’s $ 100B Investment in Us Data Center Sets Foreign Investment Record
Intel used to be a giant in the cpu industry, but the ai boom has been to recent struggles. Unlike its rivals, intel chose not to focus soly on eater manufacturing or designing chips and instead engaged in both. As a result, it was its chip-making endeavors eclipsed by tsmc, who won nvidia as a customer.
The us manufacturing icon also had some struggles with Quality in 2024, Leading to its first reported network since 1986, and dropping from first to second on Gartner’s List of Top Global SEMCONDUCONDUCONDUCTOR vendors by revneue growth. Nevertheles, after the information’s story was published, Its shares received a boost,
Intel’s New Ceo Hits The Ground Running in Bid to Revive the company
On February 28, Intel delayed the building of two chip facties in new albany, ohio by at least five years, which the general manager of intel foundry manufacturing said With the needs of our business and broader market demand, “as well as” manage our capital responsibly. “
The $ 28 billion project was greenlit in 2022, under the Leadership of Former Ceo Pat Gelsinger. He was removed by Intel’s Board in December after his ambitious turning plan – which involved funnelling money into new fabs – Failed to provide to provide notable market share green or prestigable
Gelsinger was replaced by chip industry veteran lip-pu tan in mid-night, who Quickly Announced that Intel Delhi be spinning off assets that are the part of its love. He said the company would now be focusing efforts on ai and so-called “software 2.0,” where language models and machine learning replace manually written code. TAN Also Reveled His Intention to Hire Quality Engineers, Boost Intel’s Chip Foundry Work, And Potentially Launch a Custom Semiconductor Service.
President Trump supports tsmc’s involvement with intel
Us President Donald Trump Encouched TSMC to Assist in Pulling Intel Out of its slum with a joint venture, According to reutersHe is keen to review the former us manufacturing icon with strengthening domestic production, so he does not want any part of intel to be full-off. As a result, TSMC is reportedly limiting its stake in Intel to Under 50% to ENSURE Regulatory Approval under the Trump Administration.
