Reports indicate that the U.S. is pushing Intel and TSMC to form a joint chip foundry

On February 13, reports revealed that Tristan Gerra, an analyst at U.S. brokerage firm Baird, disclosed that Intel is exploring plans to split off its semiconductor manufacturing division and form a joint venture with TSMC. Sources indicate the U.S. government is spearheading efforts to broker the deal, with TSMC expected to deploy engineers to Intel’s fabs to help produce advanced 3nm and 2nm chips in the U.S., ensuring the success of future manufacturing projects.

Gerra also noted that Intel aims to spin off its semiconductor manufacturing unit and establish a new joint venture with TSMC, which would manage and operate the fabs while qualifying for federal subsidies under the U.S. CHIPS Act. Analysts are weighing the pros and cons of the partnership, assessing its potential benefits and challenges. Over the past 12 months, Intel has accumulated $18.8 billion in losses, with GAAP profitability not expected until 2026.