Intel and TSMC reportedly forming an alliance

The ongoing saga of potential collaboration between Intel and TSMC has taken another turn, with a new report suggesting a “preliminary agreement” for a joint venture involving Intel's chip fabrication plants (fabs).

This news, reported by The Information (via Reuters), revisits a familiar narrative. This latest development shares a bit more about the potential collaboration, with TSMC reportedly considering acquiring a 20% stake in Intel's fabs.

Conflicting reports have emerged regarding the ownership structure of the new entity formed from the current Intel Foundry. Some sources indicate that “Intel and other U.S. chip companies” would retain a controlling interest, but the specifics remain hazy. TSMC's influence over Intel's fabs under this agreement is also unclear. While TSMC has a superior track record in recent years, it's unlikely it could instantly overhaul Intel's manufacturing processes. Reversing Intel's course in chip fabrication, particularly with processes like the nearly finalised 18A node, would likely be a multi-year undertaking.

Initial rumours have been followed by reports of TSMC engaging with other industry giants like Nvidia, AMD, and Broadcom about participating in such a venture. However, the involvement of these other firms in the current “preliminary agreement” remains unclear.

It's worth noting that Intel's Direct Connect event, focused on its foundry business, is scheduled for April 29th. Any potential announcements regarding collaborations or changes to Intel Foundry could be unveiled at this event.

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KitGuru says: Do you think TSMC will partner with Intel? Will other semiconductor companies join this venture?

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