Shares of Intel (NASDAQ: INTC) jumped 8% in pre-market trading on Wednesday after a report surfaced about a potential deal involving its foundry division.
Taiwan Semiconductor Manufacturing Company (NYSE: TSM) has reportedly approached major U.S. chip designers, including Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), Broadcom (NASDAQ: AVGO), and Qualcomm (NASDAQ: QCOM) to discuss forming a joint venture to own and operate Intel’s foundry business.
Reuters reported that TSMC, the world’s largest contract chipmaker, has floated running the foundry division, which makes custom chips for other companies. The talks are at an early stage, and TSMC would not own more than 50% of the joint venture, per the report.
The Trump administration has reportedly tapped TSMC to help bolster Intel’s foundry as part of efforts to bring AI chip design and manufacturing back to the U.S., reinforcing its role in this domestic production push.
Intel (NASDAQ: INTC) stock has struggled, losing roughly 55% of its value over the past year entering Wednesday. This potential collaboration with TSMC and other tech giants could offer a much-needed boost for the chipmaker.
