TSMC Offers AMD, Nvidia, and Other U.S. Customers to Take Control of Intel’s Fab

TSMC’s decision to build five more of its own factories in the US did not sit well with rumors that it might take over the struggling Intel assets, but Reuters sources have uncovered a new scheme in which the Taiwanese giant will bring in its major customers such as AMD, Nvidia, Broadcom and Qualcomm to manage Intel assets.

Image Source: Intel

As noted in the original source, TSMC itself is claiming a share of no more than 50% in the potential joint venture, while maintaining operational control over their activities. Negotiations with potential partners have just begun, and it is too early to talk about their success or failure. Such an initiative may be more pleasing to Donald Trump, who would not like to give full control over Intel’s production capacities to foreign investors, even if it is TSMC. Participation in the joint venture of American companies Nvidia, AMD, Broadcom and Qualcomm will reduce geopolitical risks.

TSMC reportedly floated the idea of ​​creating a joint venture with its American customers to manage Intel’s business even before the Taiwanese company’s new US plants were announced. Potential investors were also interested in buying Intel’s processor development business, but the company’s management is against separating it from its manufacturing assets. At this point, Qualcomm reportedly lost interest in Intel’s core business.

Image Source: Samsung Electronics

Intel’s board members are also involved in the negotiations with TSMC, although some of them are staunchly opposed to such a deal. TSMC’s plan is for the joint venture partners to also be Intel’s customers in the advanced lithography area. AMD, Nvidia, and Broadcom are rumored to be interested in using Intel’s latest 18A process technology. Intel representatives continue to believe that this process technology is superior to TSMC’s proposed 2 nm technology. Perhaps such contradictions are to some extent detrimental to the negotiating process.