Intel, a once prominent semiconductor company, is in talks with the Trump administration to hand over the operation of its chip-making plants to Taiwanese rival TSMC in an effort to revive its struggling business. The plan would separate Intel’s manufacturing business from its semiconductor design and product business, with TSMC potentially taking a majority stake alongside other investors.
The Trump administration has encouraged the deal, viewing it as a significant challenge. Intel’s partnership with TSMC would aim to boost its struggling business, which has faced setbacks in developing key chips such as those for smartphones and artificial intelligence.
While details of the potential deal remain unclear, it could involve Intel’s domestic plants in states like Oregon, Arizona, and New Mexico, as well as facilities in other countries. The move comes as Intel seeks to regain its standing in the semiconductor industry and TSMC continues to dominate advanced chip manufacturing worldwide.
The negotiations also raise questions about the Trump administration’s approach to the chips industry and Taiwan, with tensions around tariffs, technology transfers, and military support for Taiwan. Intel’s board had previously approached TSMC to explore a partnership late last year, signaling a potential shift in strategy for the struggling company.
As the discussions progress, the fate of Intel hangs in the balance, with the possibility of a significant restructuring that could reshape the semiconductor industry. The outcome of the talks will not only impact Intel’s future but could also have broader implications for U.S.-Taiwan relations and the global semiconductor market.
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