Intel might hand over its manufacturing division to TSMC, Nvidia and others

Four sources familiar with the matter say TSMC aims to maintain no more than 50 percent ownership in the venture. The talks, still in their early stages, were initiated at the request of the Trump administration.

Intel faces mounting pressure amid historic losses

The US chip giant finds itself in a challenging position after recording its first loss since 1986 - a net loss of $18.8 billion in 2024. The company's foundry division, which manufactures custom chips for clients, maintains facilities valued at $108 billion on its books.

Reuters reports that while Intel's board supports the negotiations with TSMC, some managers oppose the idea. Any collaboration would face significant technical challenges and costs due to differences in manufacturing processes.

Technical evaluation already underway

Nvidia and Broadcom have already begun testing Intel's most advanced 18A manufacturing technology. AMD is also evaluating potential use of the technology. These ongoing tests could lay the groundwork for future collaboration.

According to the report, the Trump administration insists that Intel's foundry division must not fall completely under foreign control. Any potential deal would therefore require US government approval.