Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturing) company, is reportedly considering acquiring a controlling stake in Intel's U.S. semiconductor plant and operating it, following pressure from the Donald Trump administration.
According to Bloomberg on the 14th (local time), the Trump team recently met with TSMC officials and proposed a collaboration plan between TSMC and Intel, which TSMC was receptive to.
The discussions are at a very early stage, and the exact structure of the partnership between the two companies has not yet been established, but sources said that ultimately, TSMC is expected to fully operate Intel's U.S. semiconductor plant.
The source also mentioned that the discussions could include a plan to acquire Intel's shares with support from major U.S. semiconductor design companies and the U.S. government.
Earlier that day, Taiwanese media such as China Times reported that the Trump administration is pressuring TSMC to collaborate with Intel and recently proposed three options: TSMC building an advanced packaging plant in the U.S., investing in Intel's foundry together with the U.S. government and several partners, and directly taking over packaging orders related to Intel's TSMC U.S. customers.
If the deal for TSMC to acquire Intel's plant is finalized, Reuters pointed out that it could be a "lifeline" for Intel, which is struggling financially. Once a dominant player in the global semiconductor market, Intel has been suffering from poor performance as it failed to adapt to the mobile-centric shift led by smartphones and has struggled in competition with AI chip manufacturers like Nvidia. Last year, Intel announced a major restructuring plan and laid off 15% of its total workforce.
In this regard, both TSMC and Intel declined to comment. According to Reuters, a White House official said that while the Trump administration supports foreign companies investing in and building plants in the U.S., it is "unlikely" to support foreign companies operating Intel's plants.
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