NurPhoto / Getty Images
Key Takeaways
- The Information reported on Thursday that Intel and TSMC had tentatively agreed to create a joint venture to run the foundry business of the U.S. firm.
- The report stated that TSMC would hold a 20% share in the combined company.
- Intel shares rose Thursday, while TSMC lost ground amid a general decline. Markets were rattled by fears about new tariffs announced the Trump administration.
Intel (INTC), Taiwan Semiconductor Manufacturing Company and Taiwan Semiconductor Manufacturing Company have tentatively agreed to create a joint-venture that will run the foundry business of the U.S. firm.
TSMC, the world's largest chip manufacturer, will own a 20% stake in the combined company, according to reports citing The Information. TSMC declined a comment on the reports. Intel did no respond immediately to a question for comment.
Intel’s Foundry Division produces chips for customers other than Intel. The business has been the subject of speculation for a long time, including a recent report that TSMC had approached other chipmakers to form a joint venture in order to operate Intel’s facilities.
The report of an agreement is also less than a week after President Trump announced a comprehensive package of tariffs on goods imported from other nations.
Intel shares gained 2%, while TSMC stocks lost close to 8% as a result of a general market decline. Worries about the new tariffs roiled the markets. (Read Investopedia’s live coverage of today’s markets here.)
