Intel’s in talks with TSMC to form a joint venture. This could be a big deal for the US chipmaker. Sources say the discussions started on April 3.
TSMC, the world’s largest independent chipmaker, might own 20% of the new company. The White House and the US Commerce Department have been pushing for a deal to help Intel with its financial struggles.
Intel’s been trying to get into the business of making chips for other companies. But it’s been tough. The company can’t offer the same level of service as TSMC, leading to delays and failed tests.
Last year was rough for Intel. The company lost $18.8 billion, its biggest loss since 1986. The stock price also took a hit, dropping over 60%.
What’s at stake
Intel needs to turn things around. The company’s financial struggles are a major concern. A deal with TSMC could be just what Intel needs to get back on track.
Key players
- Intel: US chipmaker looking to form a joint venture with TSMC
- TSMC: Taiwanese chipmaker and potential owner of 20% of the new company
- White House and US Commerce Department: pushing for a deal to help Intel
Sources:
