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The Taiwanese government is yet to receive any information about TSMC acquiring a 20% stake in Intel according to Minister of Economic Affairs, Kuo Chih-hui. Minister Kuo made the remarks in an interview reported by the Taiwanese press, where he shared that any such deals require approval by Taiwan's Investment Review Commission, which has not received details of the transaction. Intel's shares have gained 13.70% year-to-date on the back of a potential turnaround, but the stock has pared back most of these as the future of the firm's partnership with TSMC remains unclear.
Taiwan's Economic Minister Refuses To Discuss TSMC-Intel Deal Until He Receives More Information
According to a report in the TVBS, Taiwan's economic minister Kuo Chi-hui shared details about TSMC acquiring a 20% stake in Intel to help the latter streamline its chip fabrication. Intel has struggled with advanced manufacturing processes for years and led TSMC to dominate the global industry in terms of technology and market share in the contract chip manufacturing sector.
The American firm's efforts to establish a foothold for itself in the contract chip manufacturing industry depend on its 18A manufacturing process. Intel is aiming to have 18A manufacturing ready this year, and at the same time, TSMC plans to place its equivalent 2-nanometer manufacturing technology in mass production.
Through 18A, Intel aims to entice some of TSMC's customers to its factories, despite having some of its processor components manufactured by the Taiwanese firm. Its shares have gained nearly 14% year-to-date as investors bet that the Trump administration could play a role in convincing TSMC and American firms to help Intel navigate its manufacturing problems.
However, even though rumors of TSMC's involvement in Intel's turnaround have surfaced on multiple fronts and ranged from TSMC outright buying Intel's foundries to taking a minority stake in the foundry business, Minister Kuo shared that Taiwan's Investment Review Commission is yet to receive any details of such transactions. TSMC's acquisition of a majority stake in Intel's business will be subject to antitrust scrutiny as well, given the key role both play in the global semiconductor industry.
He was asked for comment on these reports in Taiwan, and in response refused to comment. Kuo explained that he is yet to receive any information officially from TSMC for any such deals. He added that he would share additional details if TSMC informs his ministry or the review committee about any investments.
In an earlier investment note, Mizuho commented on the rumors surrounding a potential tie-up between TSMC and Intel. It shared that most of the stock's gains stemmed from investor hopes about the Trump administration's focus on making the most advanced AI chips in the US. However, the shares have pared back their gains recently as sentiment surrounding an immediate deal for Intel's future flutters.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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