Intel (INTC) and Taiwan Semiconductor Manufacturing have a preliminary agreement to form a joint venture to run the US company's chipmaking facilities, The Information reported Thursday, citing two people with knowledge of the matter.
TSMC will share some chipmaking techniques with Intel and train personnel in exchange for a 20% stake in the proposed venture, the report said.
Intel and some US semiconductor firms will be majority shareholders in the new venture, which would include several Intel chip foundries, the report said.
No final decision has been made, and two Intel employees cited resistance within the company, partly amid concerns of potential layoffs, the report said.
The Trump administration initiated the negotiations to bolster Intel, and Commerce Department officials support the tentative deal, the report said.
Intel and the Commerce Department didn't immediately respond to requests for comment from MT Newswires, and TSMC declined to comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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