TSMC Considers Operating Intel’s US Chip Plants

Despite political and ownership challenges, TSMC is reportedly exploring to take control of Intel’s US factories to boost domestic chip production, with backing from the Trump government.

Taiwan Semiconductor Manufacturing Co. (TSMC) is contemplating a controlling stake in Intel’s US factories, following discussions with officials from the Trump administration, according to a report by the Economic Times.

This proposal comes as Trump seeks to boost domestic manufacturing and ensure the US retains its leadership in semiconductor technologies.

The report has further predicted that if realised, the arrangement would see TSMC fully operate Intel’s semiconductor factories in the US, helping to address Intel’s financial challenges, which have led to job cuts and a reduction in global expansion plans in the recent past.

The talks are, however, still in a nascent stage, and no concrete details have emerged regarding the structure of the partnership. Major US chip designers could reportedly hold equity stakes in the venture. This would be with support from the US government as the goal is to ensure that the operation is not solely foreign-owned.

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TSMC is a leading supplier for companies like Apple and Nvidia, which are heavily involved in developing chips for artificial intelligence (AI). It has also received significant U.S. grants under the Chips and Science Act.

The deal could face political opposition, especially over foreign control of the American infrastructure. However, the Trump administration has pushed for domestic manufacturing, criticising Taiwan’s dominance in the chip market. Trump has suggested tariffs on foreign semiconductors to boost local production.

TSMC’s interest in a deal with Intel marks a shift from CEO C.C. Wei’s previous stance against acquiring Intel’s factories. He has since emphasised that Intel remains a vital customer but offered little clarity on a potential partnership.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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