Intel, the struggling Silicon Valley giant, is working with the Trump administration on a plan to hand over its chip-making plants to a giant Taiwanese rival, Taiwan Semiconductor Manufacturing Company (TSMC). The deal would see TSMC take control of Intel’s manufacturing business and invest in it alongside a consortium of investors.
The proposal has been encouraged by the Trump administration, which is seeking to bolster US domestic chip manufacturing. However, critics argue that giving control of Intel’s core business to a foreign company may not address the root causes of its struggles.
TSMC would assume control of Intel’s manufacturing business and take a majority stake in it, alongside private equity firms and other tech companies. The deal could be limited to Intel’s domestic plants or include facilities in countries like Ireland and Israel.
Intel has struggled to compete with TSMC due to China’s growing threats against Taiwan. The Trump administration has proposed subsidies through the Biden administration’s CHIPS Act, but these have failed to revive Intel’s business prospects.
Analysts say that breaking up Intel could make it vulnerable to a takeover, while others argue that TSMC can address US concerns by building more manufacturing capacity in the United States.
Source: https://www.nytimes.com/2025/02/14/technology/intel-tsmc-talks-trump.html