All posts tagged: chip foundries

Intel Agrees to TSMC Takeover of Chip Foundries, Sources Say

Intel Agrees to TSMC Takeover of Chip Foundries, Sources Say

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Intel foundry. Image: Intel Intel has tentatively agreed to let Taiwan Semiconductor Manufacturing Company (TSMC) take over some of its chipmaking facilities, according to The Information. TSMC will hold a 20% stake in the joint venture, contributing not cash, but value through sharing its chipmaking practices and training Intel staff, according to anonymous sources cited by the publication. Rumours of a possible takeover of Intel started swirling in February, with TSMC and Broadcom considering splitting the U.S. company’s manufacturing and design arms between them. The following month, TSMC reportedly offered a share in its proposed acquisition of the chip foundries to NVIDIA and AMD, as well as Broadcom. Both NVIDIA and Broadcom initiated manufacturing testing at Intel’s facilities at the time, sources said. However, Intel did not want to sell its chip design house separately from the foundry division, which manufactures custom chips for its customers. SEE: TSMC’s $100B Investment in US Data Centers Sets Foreign Investment Record Intel used to be a giant in the CPU industry, but the AI boom has led to …

TSMC Proposes Shared Takeover with Chip Giants

TSMC Proposes Shared Takeover with Chip Giants

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Intel foundry. Image: Intel Taiwan Semiconductor Manufacturing Company has offered a share in its proposed acquisition of Intel’s chip foundries to NVIDIA, Broadcom, and AMD, sources told Reuters. The Taiwanese chipmaker intends to oversee the operations of Intel’s fab division, but aims to retain less than 50% ownership and is seeking multiple partners for the deal. Intel’s reluctance and internal divisions According to the anonymous sources, Intel does not want to sell its chip design house separately from the foundry division, which manufactures custom chips for its customers. Intel executives are also divided on whether striking any deal is a good idea. Last month, it was reported that TSMC and Broadcom were considering splitting the U.S. company’s manufacturing and design arms between them. Intel’s factories already operate somewhat independently; since 2022, they have taken orders from outside customers and in-house at equal priority. More about data centers Challenges in potential TSMC-Intel partnership TSMC has its own demands when it comes to the joint venture, as it wants any potential investors to also be Intel advanced-manufacturing …