Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Intel Corp. (NASDAQ:INTC) may be facing a turning point as rumors suggest the U.S. government could intervene to push a joint venture between the struggling chipmaker and Taiwan Semiconductor Manufacturing Co. (NYSE:TSM).

What Happened: According to Baird analyst Tristan Gerra, supply chain sources indicate that the U.S. government is considering forcing Intel into a joint venture with TSMC to bolster domestic chip manufacturing, reported Investing.com.

The deal would see TSMC deploy engineers to Intel's advanced 3nm and 2nm fabrication plants, leveraging its expertise to help ensure the success of Intel's foundry business.

Don't Miss:

• Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.
• If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

Under the rumored arrangement, the fab unit could be spun off into a new entity co-owned by Intel and TSMC, with the latter overseeing operations.

The new company could also qualify for funding under the U.S. CHIPS Act, aimed at revitalizing the U.S. semiconductor industry.

"While there is no confirmation and potential completion of this project could be lengthy, we think this move makes sense..." Gerra noted.

See Also: CEO of Integris gathered a team of senior investment managers who have $34.22 billion in combined owned and managed assets in the West Coast — here’s how to invest in their private credit fund that targets 12% annual interest rate.

Why It Matters:  Intel, once the undisputed leader in semiconductor manufacturing, has faced challenges and lost ground to rivals like Nvidia Corp. (NASDAQ:NVDA) and Broadcom Inc. (NASDAQ:AVGO).

Its stock plunged 60% last year as it fell behind in AI chip advancements. The latest earnings report marked a third straight quarter of declining revenue, with a weak outlook ahead.

Leadership changes are also underway after CEO Pat Gelsinger’s departure in December.

Meanwhile, on Tuesday, U.S. Vice President JD Vance spoke at the Paris AI summit about safeguarding American technologies from foreign adversaries.

The U.S. and U.K. also declined to sign a global AI safety declaration at the AI Action Summit in Paris. Their decision set them apart from nearly 60 nations, including China, India, and Germany.

Check This Out:

Interest Rates Are Falling, But These Yields Aren't Going Anywhere

Lower interest rates mean some investments won't yield what they did in months past, but you don't have to lose those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities.

Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, this one has a minimum investment of only $100. 

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.

This article Taiwan Semiconductor Could Be The Lifeline Intel Needs As Rumors Swirl Of A US-Backed Joint Venture originally appeared on Benzinga.com