Well, it seems like an Intel-TSMC deal isn't entirely out of the equation, as it is now reported that Intel's CEO Tan met with the TSMC counterpart to discuss the possibilities of a partnership.
Intel's CEO Doesn't Rule Out a Collaboration With TSMC In a "Win, Win Situation"; Foundry Handover Looks Uncertain For Now
Rumors about an Intel-TSMC deal had been swirling for a while now, especially after the Trump administration took office, given that the administration prioritized turning over the domestic chip industry, where Intel played a vital part. However, after Tan took over the office, developments around a partnership with TSMC started to fade away. However, now, Reuters reports that Intel's CEO has revealed a meeting with CEO C.C. Wei during a conference call with analysts, diving into how both companies could benefit from each other's resources.
We clearly view TSMC as our partner, and they have been very good partners to have. (Retired TSMC founder) Morris (Chang) and (CEO) CC (Wei) are very long-time friends of mine. We also met recently (to) try to find areas we can collaborate and so that we can create a win, win situation.
- Intel's CEO Lip-Bu Tan
It is claimed that Tan was present alongside other TSMC officials during the recent NA Technology Symposium, which shows that Intel indeed sees the Taiwan giant as a key partner. Interestingly, it was rumored that Intel had recently decided to outsource 2nm technology to TSMC, likely for the Nova Lake compute tile. Hence, it is evident that Intel will continue to adopt a dual-sourcing strategy for its semiconductors. However, a priority will still remain on in-house sources like Intel Foundry.
In terms of an Intel-TSMC deal, there were multiple possibilities, with some claims saying that TSMC will handle Team Blue's US facilities, while others said that the Taiwan giant would acquire a stake in Intel Foundry. Notably, most of the claims emphasized TSMC taking control over Intel's operations, either one way or the other. But, it seems like with the new leadership, a focus would be on both firms working together in a particular segment, which could prove to be a "win-win" situation for both of them.
For now, Intel is certain to strive for change in its business operations. As revealed by CEO Tan, the firm plans to implement widespread layoffs by the next quarter, which indicates that Intel's future operations will indeed see a lot of changes.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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