Intel, TSMC Plan Joint Chipmaking Venture in Arizona

Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) have reached a preliminary agreement to form a joint venture to operate some of Intel's chipmaking facilities, with TSMC taking a 20% stake without investing capital, instead offering expertise and training. The deal, if finalized, would represent a significant shift as TSMC, a longtime rival, becomes a partner. Intel and other U.S. chipmakers would maintain majority control of the venture. The discussions have been encouraged by U.S. Commerce officials aiming to support Intel's turnaround efforts amidst financial challenges and potential layoffs. The joint venture will cover some of Intel's facilities, potentially including those in Arizona, and is part of Intel's strategy under new CEO Lip-Bu Tan to address its innovation lag and financial struggles. The agreement remains tentative, with negotiations ongoing and no binding agreement reached yet.