Shares of Intel (INTC, Financial) rose nearly 5% on Wednesday morning following reports that its loss-making foundry division could be operated by a joint venture pitched by Taiwanese chipmaker TSMC (TSM, Financial). Reuters reported that the business is in talks with Nvidia (NVDA, Financial), AMD (AMD, Financial), Broadcom (AVGO, Financial) and Qualcomm (QCOM, Financial) to take a stake in the business. The proposal would have TSMC manage the day‑to‑day operations of Intel's custom chipmaking facilities but would not own more than half of that.
As part of a wider effort to help revive advanced manufacturing in the United States that the Trump administration has directed, this initiative is announced. In recent years, Intel, the American industrial icon, has found itself in the doldrums, reporting its first loss in 1986 and with its share price down by about 70% in five years as it has been left behind by global competitors.
The joint venture pitch has industry insiders up next believing it could represent a turning point for Intel, to help revive its manufacturing business. The proposal also suggests an intelligent and responsible approach to taking advantage of strategic partnerships in the midst of ongoing difficulties in the market.
