TSMC (TSM, Financial) has proposed to Nvidia (NVDA), AMD (AMD), and Broadcom (AVGO) the creation of a joint venture aimed at operating Intel's (INTC) manufacturing facility. Under this proposal, TSMC would manage the operations of Intel's custom chip production department, ensuring that chips are tailored to client specifications. It is noted that TSMC's stake in this joint venture would remain below 50%.
Currently, discussions are in the preliminary stages, and any final agreement would require approval from the U.S. government, which is cautious about foreign control over Intel's manufacturing unit. Intel's board is reportedly supportive of negotiations with TSMC. However, there is internal opposition from some senior executives.
The potential collaboration between TSMC and Intel is anticipated to face significant challenges, including substantial costs and time demands. This is partly due to the significant differences in factory processes, chemical usage, and chip-making equipment configurations between the two companies.
It is important to monitor the developments of this proposal as it could impact the chip manufacturing landscape and corporate strategies within the semiconductor industry.
