TSMC is still considering a strategic joint venture to operate Intel's manufacturing capacity, according to four sources close to Reuters that are familiar with the discussions. The proposed arrangement would limit TSMC's ownership to less than 50% and potentially distribute stakes to major American chip designers, including AMD, Broadcom, NVIDIA, and Qualcomm. The initiative emerged following direct intervention from the Trump administration, which has prioritized revitalizing domestic semiconductor manufacturing while maintaining American control of critical technology infrastructure. Under the proposed framework, Intel would spin off its Intel Foundry division, with TSMC acquiring a minority stake and bringing in partner companies as co-investors.

Apple, TSMC's largest customer, is absent from these preliminary discussions, suggesting careful strategic positioning within the competitive ecosystem—however, significant technical and operational challenges are facing the potential joint venture. Intel's manufacturing and real estate assets are valued at approximately $108 billion, requiring substantial capital commitments from prospective partners. More fundamentally, the technological integration presents massive obstacles, as Intel and TSMC utilize fundamentally different manufacturing processes with distinct equipment configurations and material requirements. However, the complex negotiations remain in the early stages, with significant technical, financial, and regulatory hurdles to overcome before any formal agreement materializes. Intel is still not giving the clear green light to spin off rumors.