The world’s largest contract chip-maker is reportedly touting a possible joint venture for Intel’s Foundry business.

Reuters, citing four sources familiar with the matter, reported that TSMC has pitched Nvidia, Advanced Micro Devices and Broadcom about taking stakes in a joint venture that would operate Intel’s chip-making factories.

Last month it had reported that TSMC was considering taking a controlling stake in Intel’s manufacturing operations at the request of Trump administration officials.

Intel Foundry

Speculation about Intel’s Foundry has been swirling for months now, considering Intel’s deteriorating financial state, which has seen it cut jobs, ‘retire’ its former CEO Pat Geslinger, and reduce worldwide expansion plans.

As part of a stuttering turnaround plan, Intel had confirmed in September that it planned “to establish Intel Foundry as an independent subsidiary inside of Intel.”

But the Intel Foundry spin-off was thrust in doubt after the Biden administration finalised an award of $7.86 billion (£6.27bn) in federal funding under the Chips and Science Act – a scheme that Trump is now looking to axe.

Intel in a filing had also revealed that the $7.86 billion government subsidies, would restrict it’s ability to sell stakes in its chip-making unit if it became an independent entity.

Then in December, Intel’s interim co-CEOs Michelle Johnston Holthaus and David Zinsner conceded that the company may be forced to sell its manufacturing operations if a new chip-making technology slated for next year does not succeed.

Joint venture

Now Reuters has reported that TSMC has pitched Nvidia, Advanced Micro Devices, Broadcom and even Qualcomm about taking stakes in a joint venture that would operate Intel’s factories.

Under the proposal, the Taiwanese chip-making giant would run the operations of Intel’s foundry division, which makes chips adapted for the needs of customers, but it would not own more than 50 percent, the sources said.

The talks, which are reportedly at an early stage, come after US President Donald Trump’s administration requested TSMC assist in turning around the troubled US industrial icon.

Any final deal – the value of which is unclear – would need approval from the Trump administration, which does not want Intel or its foundry division to be fully foreign-owned, the sources said.

Intel, TSMC, Nvidia, AMD and Qualcomm declined to comment.

The White House and Broadcom did not respond to requests for comment, Reuters reported.