Reuters reports rumors that TSMC has proposed a joint venture to US-based chip design companies (without their own factories) to invest in Intel’s struggling chip production business.
TSMC’s proposal entails becoming the operator of Intel’s chip production business while holding no more than 50% of the shares, with the remaining stake to be held by companies like NVIDIA, AMD, Broadcom, and Qualcomm.
This development follows TSMC potentially acquiring Intel’s chip manufacturing plants as per a proposal by the Trump administration team in February. TSMC’s willingness to hold less than 50% of the shares may help alleviate resistance on the issue of American ownership.
According to Reuters’ sources, some Intel board members are interested in this proposal and negotiations are underway, although not all board members are in agreement.
Source: Reuters
TLDR: TSMC proposes a joint venture with US chip design companies to invest in Intel’s chip production business, holding less than 50% of the shares, which could potentially impact the issue of American ownership. Intel board members are divided on the proposal.
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