Intel shares recover from Trump tariff losses on TSMC deal report
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The news: Intel shares reversed losses triggered by Trump’s tariff threat, climbing more than 4% after The Information reported the company had tentatively agreed to a chipmaking joint venture with Taiwan Semiconductor Manufacturing Co (TSMC).
The publication said executives from both companies reached a preliminary agreement to form a joint venture that would run Intel’s manufacturing plants, with TSMC taking a 20% stake in exchange for sharing some of its chipmaking methods and training Intel personnel.
Intel and other American chipmakers will hold the majority of stock in the initiative, which would include at least some of Intel’s existing foundries.
The context: The Trump administration initiated the Intel-TSMC talks, in an effort to revitalise Intel, two of The Information sources said. Commerce officials who facilitated the negotiations support the tentative deal, according to the people.
There is still resistance from some Intel executives concerned the deal would cause widespread layoffs and subsume Intel’s own chipmaking technology, the report said.
The numbers: Intel posted an USD18.8 billion ($29.74 billion) net loss in 2024 – it’s first in decades – due to a weak PC market and heavy investments in chipmaking.
The agreement follows TSMC’s USD100 billion US expansion and comes as TSMC faces a US probe over Huawei chip production.
Intel’s talks with TSMC had stalled due to a CEO vacancy, but resumed after Lip-Bu Tan's appointment last month, The Information said.
The source: The Information
