According to a report by The Information on Thursday, Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) have tentatively agreed to establish a joint venture to manage chipmaking Intel’s factories in the U.S., citing two sources familiar with the discussions. According to the report, TSMC, the leading contract chip manufacturer globally, is set to acquire a 20% stake in the new company.

Meanwhile, officials from the White House and the Commerce Department have been urging TSMC and Intel to reach an agreement to address Intel’s ongoing crisis, the report further stated.

Intel and TSMC chose not to comment, while the White House did not immediately show a response to Reuters' request for a statement. In March, Reuters notified that TSMC had approached Nvidia, Advanced Micro Devices, and Broadcom to invest in a joint venture that would run Intel's factories. This move came after the U.S. administration asked the Taiwanese chipmaker to assist in reviving the struggling American semiconductor giant.

In March, Intel appointed Lip-Bu Tan, a former board member and experienced chip industry leader, as its CEO to help turn the company around. Intel had struggled to capitalise on the AI-driven semiconductor boom while heavily investing in expanding its chip manufacturing business. Its efforts to produce chips for external clients have faced setbacks, with former executives telling Reuters that Intel lagged behind competitor TSMC in customer service and technical expertise, resulting in delays and unsuccessful tests. In 2024, Intel posted a net loss of $18.8 billion, the company’s first annual loss since 1986, primarily due to significant impairments.

In 2024, the company's shares plummeted by 60%, while the benchmark S&P 500 index gained over 23%. However, the stock has rebounded this year, rising nearly 12%. Meanwhile, at a press event, TSMC announced last month that it plans to invest an additional $100 billion in the U.S. to construct five more chip manufacturing facilities.