INTC stock is rising after TSMC pitched an Intel foundry joint venture to Nvidia, AMD, and Broadcom
Taiwanese chipmaking giant TSMC is in discussions with Nvidia, AMD, Broadcom, and Qualcomm about taking a stake in a joint venture to operate Intel’s foundry division, its loss-making business that manufactures chips for other companies.
Under the proposal, TSMC would oversee the day-to-day operations of Intel’s custom chipmaking facilities while owning no more than a 50% stake in the business, Reuters reported on Wednesday.
The news has sent Intel up 8% in premarket trading, with the stock currently topping the S&P 500 for the day.
The initiative comes after President Donald Trump’s administration requested TSMC to help turn around Intel as part of a broader effort to restore advanced manufacturing in the US, but did not want Intel or its foundry division to be entirely foreign-owned. The American industrial icon has been struggling in recent years, reporting its first annual loss since 1986 last year and seeing its shares decline by ~70% in the past five years as the company fell behind competitors.
Under the proposal, TSMC would oversee the day-to-day operations of Intel’s custom chipmaking facilities while owning no more than a 50% stake in the business, Reuters reported on Wednesday.
The news has sent Intel up 8% in premarket trading, with the stock currently topping the S&P 500 for the day.
The initiative comes after President Donald Trump’s administration requested TSMC to help turn around Intel as part of a broader effort to restore advanced manufacturing in the US, but did not want Intel or its foundry division to be entirely foreign-owned. The American industrial icon has been struggling in recent years, reporting its first annual loss since 1986 last year and seeing its shares decline by ~70% in the past five years as the company fell behind competitors.
