
Intel and TSMC in Foundry Joint Venture Talks
Intel and TSMC are reportedly locked in talks to form a semiconductor foundry joint-venture (JV). This sensational piece of news comes from Reuters, which says that the two companies have reached a preliminary agreement to form the JV. Apparently, the move saves TSMC from building any hard infrastructure on U.S. soil, and instead use Intel's semiconductor foundry facilities. This would hence bring TSMC's semiconductor manufacturing IP and workforce to the U.S., however it remains to be seen if the very latest foundry technology would be handed over to the JV. TSMC would hold a 20% stake in the venture, and Intel the rest. Investors of Intel and TSMC reacted very differently to the news, with the TSMC stock falling 6% and Intel gaining 5%. Reuters also reports that it was the Trump Administration that negotiated this joint-venture between TSMC and Intel in a bid to "revitalize Intel."