Intel Shares Rise Amid Potential Foundry Joint Venture with TSMC, Nvidia, AMD, and Broadcom

Intel

Intel (NASDAQ: INTC) shares surged early Wednesday following reports that a consortium of semiconductor companies, including Taiwan Semiconductor Manufacturing Company (TSMC), Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Broadcom (NASDAQ: AVGO), is exploring a potential joint venture to manage Intel’s chip-manufacturing operations.

According to sources cited by Reuters, TSMC has proposed that these industry leaders take equity stakes in a joint venture to operate Intel’s foundry business. Under the proposal, TSMC would oversee day-to-day operations while maintaining no more than a 50% stake in the venture. The agreement would require approval from the U.S. government, particularly as the Trump administration has sought to revitalize domestic semiconductor manufacturing while preventing Intel's foundry division from falling entirely under foreign control.

Intel’s foundry business has faced significant challenges, reporting a $13.4 billion loss last year. The company has also delayed the opening of two Ohio-based chip fabrication plants, now expecting operations to commence in 2030 or 2031—five to six years later than initially planned. Despite these setbacks, Intel maintains that its 18A process technology will enable it to regain a competitive edge over TSMC as early as this year.

The timing of TSMC’s proposal is noteworthy, coming shortly before its recent $100 billion commitment to expand U.S. semiconductor manufacturing. That investment includes plans for three new chip plants, two packaging facilities, and an R&D center. While some analysts believed this commitment would preclude TSMC from acquiring additional operations, discussions regarding the Intel foundry joint venture have reportedly continued.

Intel, TSMC, Nvidia, AMD, and Broadcom have yet to comment on the matter. Meanwhile, news of the potential collaboration has driven Intel's stock up by 8%, making it the top performer in the S&P 500 for the day.