Adapted by:
Juan Carlos López
Senior WriterAn engineer by training. A science and tech journalist by passion, vocation, and conviction. I've been writing professionally for over two decades, and I suspect I still have a long way to go. At Xataka, I write about many topics, but I mainly enjoy covering nuclear fusion, quantum physics, quantum computers, microprocessors, and TVs.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
The Trump administration is prioritizing an Intel rescue plan. The company’s poor financial results for several consecutive years have put it in a precarious position, which led to the departure of CEO Pat Gelsinger in December. The U.S. can’t afford to lose Intel because it’s the largest manufacturer of integrated circuits in the country.
Intel’s network of chip production, packaging, and verification plants extends beyond the U.S. to Europe, Asia, the Middle East, and Central America. However, the company is struggling to remain competitive. This issue prompted the Trump administration to seek assistance from TSMC in mid-March to help revitalize Intel’s semiconductor factories.
This kind of initiative is unlikely to succeed without government support. Luckly for Intel, President Donald Trump is actively promoting it.
Intel and TSMC Reportedly Reach a Preliminary Agreement
Two years before his departure, Gelsinger expressed openness to the idea of separating the company’s network of integrated circuit fabs from Intel’s parent company. This option was seen as a potential way to enhance the competitiveness of Intel’s chip production. It appears even more advantageous now, especially with TSMC’s involvement. In the end, TSMC is the world’s largest semiconductor manufacturer.
The plan is for TSMC to acquire a 20% stake in the new company.
According to Reuters and The Information, Intel and TSMC have agreed to form a joint venture responsible for managing Intel’s semiconductor fabs. The plan involves TSMC holding a 20% stake in the new company, while Intel is expected to retain a majority stake. Although there’s been no official confirmation, experts are giving credibility to the reports.
However, some within Intel are opposed to this strategy. Joseph Bonetti, Intel’s principal engineering program manager, is one of them. “Intel Leaders, Intel Board, Trump Administration, please do not sell out and/or give control of Intel Foundry to TSMC, just as Intel is taking a technical lead and getting out of first gear. This would be a horrible, demoralizing mistake,” Bonetti shared in a LinkedIn post.
Bonetti further argues that Intel isn’t falling behind its competitors, adding that the company’s engineers are making significant progress in chip production. However, at this stage, the concerns expressed by Bonetti and other Intel employees opposed to TSMC’s involvement in plant management are unlikely to prevail.
Image | Slejven Djurakovic
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