Intel Corp. announced a chip-making joint venture with Taiwan Semiconductor Manufacturing Company (TSMC). The purpose of the partnership is to run Intel’s manufacturing plants.
The global semiconductor industry is once again in the spotlight as the company’s shares experienced an uptick following news of a potential joint venture with Taiwan Semiconductor Manufacturing Company (TSMC).
The announcement of the joint venture came at an interesting time, a matter of days since the Trump administration leveled new tariffs on imported technology goods.
These tariffs are part of the United States government’s agenda to bring semiconductor manufacturing back to US soil and reduce reliance on foreign supply chains. This agenda is considered a key national security and economic priority.
Intel teams up with TSMC
On April 3, 2025, Intel’s shares rose by more than 4% after reports about a tentative agreement with TSMC to form a joint venture surfaced.
The partnership is focused on Intel’s US-based foundry business. Under the proposed deal, TSMC would acquire a 20% stake in the new company.
Intel’s partnership with the world’s largest chip manufacturer is the company’s attempt to expand its foundry services and produce chips for third-party clients. The business has been the subject of deal speculation for quite some time. TSMC approached several other chipmakers about a joint venture to operate the tech company’s chip-making facilities.
Executives from both TSMC and Intel reached an agreement to form a joint venture that would run Intel’s manufacturing plants, the Information reported.
The tech company and other US-based chipmakers will hold the majority of stock in the venture which is aligned with the growing emphasis on domestic semiconductor manufacturing and the current US administration’s concerns about national security and supply chain resilience.
TSMC tariff concerns
In 2024, the company reported its first annual net loss since 1986, amounting to $18.8B. Its partnership with TSMC could provide the company with access to advanced manufacturing processes and technical expertise, allowing it to enhance its competitiveness in the semiconductor industry. The partnership already caused an uptick in the company’s shares.
However, TSMC shares experienced a downturn, although that did not have much to do with its partnership with the tech firm. It was rather due to the tariffs on goods imported from other countries imposed by the Trump administration.
The US government has shown considerable interest in imposing tariffs on foreign goods across several industries and has been pushing an “America First” agenda that has so far set back many companies in different countries that depend on American exports for their revenue.
The report of the deal between TSMC and Intel came less than a day after the tariffs were announced. TSMC shares lost close to 8% due to concerns about the new tariffs.
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