Investment bank Baird's analyst, Tristan Gerra, conveyed market rumors suggesting that the U.S. government is encouraging Intel (INTC, Financial) and Taiwan Semiconductor Manufacturing Company (TSMC) to establish a joint venture. This collaboration aims to develop multiple chip fabrication projects in the U.S.
According to Gerra, U.S. officials have proposed that Intel contribute its existing and under-construction 3nm and 2nm chip facilities to the joint venture. TSMC would provide personnel to these plants to enhance technological capabilities, ensuring robust manufacturing capacity and stable chip supply in the U.S. These facilities are expected to receive government subsidies.
Neither Intel nor TSMC has confirmed or denied these speculations. Gerra mentions that this potential joint venture seems plausible, as it could improve Intel’s cash flow. Previously, Intel had reorganized its chip foundry business into an independent unit, amid speculation about a possible spin-off of its foundry operations.
