- Intel (INTC) shares rose 2.30% to $22.50, hitting $23.90, while Taiwan Semiconductor Manufacturing Co. (TSM) shares fell over 7% to $158.28, following a preliminary deal for a joint venture where TSMC takes a 20% stake in Intel’s U.S. chipmaking facilities, as reported by The Information.
- The Trump administration drove the Intel-TSMC talks to bolster Intel’s domestic production, building on TSMC’s earlier pitch to U.S. chip designers like Nvidia (NVDA) and AMD (AMD), signaling a strategic shift that blends Intel’s infrastructure with TSMC’s expertise amid a competitive semiconductor landscape.
Intel (INTC) shares climbed 2.30% to $22.50, peaking at $23.90 during Thursday’s session, buoyed by news of a potential lifeline, while U.S.-listed shares of Taiwan Semiconductor Manufacturing Co. (TSM) slid over 7% to $158.28. According to a report by The Information, credited to Reuters for additional context, Intel and TSMC have struck a preliminary deal to form a joint venture to manage Intel’s U.S. chipmaking plants, with TSMC set to hold a 20% stake in the new entity. This move reflects a strategic pivot aimed at shoring up Intel’s struggling domestic operations amid fierce competition in the semiconductor space.
Last month it was reported that TSMC had initially pitched heavyweights like Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO) to join a similar venture, a plan now evolving with Intel at the center. The Trump administration reportedly sparked these talks, pushing to revive Intel’s fortunes as a cornerstone of U.S. tech manufacturing. Intel, once a chipmaking titan, has faced production setbacks and lost ground to TSMC, whose advanced processes power many of today’s cutting-edge chips. TSMC’s involvement could bring technical expertise and capital to Intel’s facilities, potentially boosting output and efficiency, though its stock dip suggests investor wariness about the deal’s implications or broader market pressures.
The joint venture signals a blending of strengths – Intel’s U.S. footprint with TSMC’s manufacturing prowess – amid a global race for chip supremacy. Last months’ reporting underscores TSMC’s proactive role in seeking partners, while this latest step ties into U.S. policy goals to bolster domestic semiconductor production. For Intel, the 2.30% gain reflects cautious optimism, but TSMC’s 7% drop hints at uncertainties, possibly tied to its minority stake or the risks of tying up with a faltering giant. This deal, if finalized, could reshape their rivalry into a partnership with far-reaching industry impact.
WallStreetPit does not provide investment advice. All rights reserved.
Leave a Reply