According to informed sources,$Taiwan Semiconductor (TSM.US)$has been submitted to$NVIDIA (NVDA.US)$、$Advanced Micro Devices (AMD.US)$and$Broadcom (AVGO.US)$A proposal to invest in a joint venture that will operate$Intel (INTC.US)$the wafer fab, with Taiwan Semiconductor holding no more than 50% of the joint venture.

Intel's stock price rose over 7% in pre-market trading.

According to the proposal, Taiwan Semiconductor will be responsible for the operation of Intel's wafer foundry division, which specializes in producing chips according to custom customer needs, but Taiwan Semiconductor's shareholding will not exceed 50%. Sources also revealed that Taiwan Semiconductor has made similar investment suggestions to$Qualcomm (QCOM.US)$.

Sources mentioned that the negotiations between the two parties are still in the early stages following requests from the Trump administration for Taiwan Semiconductor to assist in reversing the struggles of the American industrial icon Intel.

Sources indicated that any final Trade, the value of which is not yet clear, would require approval from the Trump administration, which does not wish for Intel or its foundry division to be entirely foreign-owned.

This concerns Intel's future, as the company's stock price fell more than half last year.

Due to a massive impairment, Intel reported its first net loss of $18.8 billion since 1986 in 2024. According to a document submitted by the company, as of December 31, the book value of the assets and factory equipment in its foundry division was $108 billion.

Three sources said that Trump is eager to revitalize Intel's fortunes as he seeks to boost advanced manufacturing in the USA.

Sources indicated that Taiwan Semiconductor had already conducted joint venture promotions to potential supporters before March 3 when Trump announced that the company plans to invest $100 billion in the USA, including the construction of five chip factories in the USA over the next few years.

Sources said that negotiations regarding the formation of a joint venture for Intel's foundry division are still ongoing, and Taiwan Semiconductor hopes to have more than one chip design company as its partner.

Several companies have expressed interest in acquiring parts of Intel's business, but two of the four sources indicated that Intel has refused to discuss separating the chip design division from the foundry division for sale.

According to the aforementioned informed sources and another source, Qualcomm has withdrawn from previous discussions about acquiring all or part of Intel's shares.

Two sources said that the members of Intel's Board of Directors support the deal and have negotiated with Taiwan Semiconductor, but some executives firmly oppose it.

Intel's foundry business, or foundry division, is a key part of former CEO Pat Gelsinger's efforts to save Intel. In December last year, Intel's Board of Directors appointed two interim co-CEOs, forcing Gelsinger to step down, and these two interim co-CEOs put on hold the soon-to-be-launched AI chips.

Any Trade between Taiwan Semiconductor and Intel will face significant challenges and be costly and labor-intensive. According to different sources from both companies, there are significant differences in the processes, Chemicals, and chip manufacturing tools currently used in their factories.

Intel had previously established a manufacturing partnership with United Microelectronics Corporation in Taiwan and Tower Semiconductor in Israel, which may set a precedent for collaboration between the two companies, but it is not clear how this partnership will involve business manufacturing secrets.$Tower Semiconductor (TSEM.US)$

One source mentioned that this **** chip manufacturer hopes that potential investors in the joint venture are also advanced manufacturing customers of Intel.

Informed sources revealed last week that NVIDIA and Broadcom are conducting production tests with Intel, using the company's most advanced manufacturing technology, known as 18A. AMD is also evaluating whether Intel's 18A manufacturing process is suitable for itself.

However, two sources stated that 18A has been a contentious area in Intel's negotiations with Taiwan Semiconductor. According to sources, during talks in February, Intel executives told Taiwan Semiconductor that its advanced 18A manufacturing technology is superior to Taiwan Semiconductor's 2-nanometer process.

Editor/ping