TSMC Proposes Joint Venture with AMD, NVIDIA, Qualcomm, and Broadcom to Acquire Intel Foundry
It looks like TSMC still plans to acquire Intel Foundry, but to make this possible, they would need a strategic partnership with other companies. According to four sources familiar with the deal (thanks Reuters), TSMC is working on a plan to secure Intel’s foundry business, specifically the parts that would benefit TSMC. This new approach could help TSMC gain control without fully taking over the entire business.
The Proposed Joint Venture
The proposal would involve TSMC holding less than 50% of the ownership in the new joint venture. The remaining shares would be divided among some of the biggest chip designers in the United States, such as AMD, NVIDIA, Qualcomm, and Broadcom. The goal would be to maintain U.S. control over the Intel Foundry business. Intel’s assets are valued at about $108 billion, meaning that the partners would need to formally commit to this significant deal.
Challenges in the Deal
However, TSMC and Intel would face many challenges in merging their operations. The two companies have very different processes, machinery, and semiconductor technologies. Right now, these are just early talks, and before any purchase can happen, it will have to pass several regulatory requirements, which are not easy to meet.
This is just the beginning of the conversation, and there is much more to unfold as the companies work through the details.
