Photo = Yonhap news

 

 

[Alpha Biz= Kim Jisun] Amid growing pressure from the Trump administration’s “Made in America” chip policy, Taiwan’s TSMC is reportedly considering acquiring a 20% stake in Intel’s foundry division, Intel Foundry Services (IFS).


According to Taiwan’s United Daily News on Monday, TSMC is exploring the purchase of newly issued IFS shares as Intel plans to spin off its foundry business. This move is seen as a response to US government demands to bolster domestic semiconductor manufacturing and secure Intel’s recovery.


Intel, a cornerstone of the American semiconductor industry, pioneered the first commercial microprocessor in 1971 and dominated the memory chip sector in the 1980s. The company entered the foundry business in the mid-2010s and is expanding manufacturing facilities in Arizona, New Mexico, Oregon, and Ohio. In Europe, Intel is growing its presence in Ireland and Germany, while its Asian operations include plants in Israel and China.


However, Intel’s foundry business has struggled due to limited customer interest. Key players like AMD and NVIDIA compete with Intel in CPU and GPU markets, while Qualcomm relies on other foundries like Samsung. As a result, Intel’s foundry unit posted a $7 billion loss in 2023.


Intel reportedly began seeking joint ventures with major foundries last year. In October, then-CEO Pat Gelsinger approached Samsung Chairman Lee Jae-yong to discuss a potential foundry partnership. However, Gelsinger’s departure amid poor earnings halted the talks, shifting Intel’s focus to TSMC.


While Intel initially preferred a joint production venture, TSMC declined due to its advanced 3nm production commitments, prompting the current consideration of an equity acquisition. If finalized, TSMC’s 20% stake could strengthen Intel’s foundry business and align with US interests in securing semiconductor supply chains.

 

 

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