TSMC Denies Talks Intel Chipmaking Joint Venture

Taiwan Semiconductor Manufacturing Co (TSMC) has issued a clear denial after a number of media reports of a joint venture with Intel.

CNBC reported that the Taiwanese chip manufacturing giant had denied reports that the semiconductor giant was in active discussions with Intel regarding a chipmaking joint venture.

It comes after Bloomberg in February has reported that TSMC was considering taking a controlling stake in Intel’s manufacturing operations at the request of Trump administration officials.

TSMC denial

Then in March Reuters had reported that TSMC had pitched Nvidia, Advanced Micro Devices and Broadcom about taking stakes in a joint venture that would operate Intel’s chip-making factories.

Then earlier this month in April the Information reported that Intel and TSMC had reached a preliminary agreement to form a joint venture to run Intel’s fabrication plants.

The deal, if concluded, would have seen TSMC take a 20 percent stake in the new company, the report stated at the time.

But now CNBC has reported that the boss of TSMC has dismissed these reports.

“TSMC is not engaged in any discussion with other companies regarding any joint venture, technology licensing or technology,” TSMC CEO C.C. Wei reportedly said on the company’s first-quarter earnings call on Wednesday.

Intel was not immediately available for comment when contacted by CNBC on Wei’s comments on Thursday.

The company previously said it doesn’t comment on rumours, when asked by CNBC about the reported discussions.

Intel Foundry

There had been intense speculation about Intel’s Foundry for a while now, considering Intel’s deteriorating finances, which has seen the firm cut jobs, ‘retire’ its former CEO Pat Geslinger, and reduce worldwide expansion plans.

As part of a stuttering turnaround plan, Intel had confirmed in September 2024 that it planned “to establish Intel Foundry as an independent subsidiary inside of Intel.”

But the Intel Foundry spin-off was thrust in doubt after the Biden administration finalised an award of $7.86 billion (£6.27bn) in federal funding under the Chips and Science Act – a scheme that Trump is now looking to axe.

Intel in a filing had also revealed that the $7.86 billion government subsidies, would restrict it’s ability to sell stakes in its chip-making unit if it became an independent entity.

Then in December, Intel’s interim co-CEOs Michelle Johnston Holthaus and David Zinsner conceded that the company may be forced to sell its manufacturing operations if a new chip-making technology slated for next year does not succeed.

New CEO

But Intel now has a new CEO, after it appointed chip industry veteran Lip-Bu Tan as CEO in March.

That appointment came after Intel in December had shortlisted a handful of candidates, including Lip-Bu Tan, for the role of chief executive.

Lip-Bu Tan is a highly respected chip industry veteran and he had joined Intel’s board of directors a couple of years ago in order to help with the chipmaker’s turnaround efforts.

But in August 2024 Lip-Bu Tan had suddenly informed Intel’s board that he would be leaving, “effective immediately,” stating it was a “personal decision.”

Lip-Bu Tan’s departure from Intel’s board last August came reports of differences with then CEO Pat Gelsinger and other directors, over what Tan considered Intel’s bloated workforce, risk-averse culture, and lagging artificial intelligence strategy.