Baird senior analyst Tristan Gerra stated in a Wednesday report that rumors are circulating in the securities industry about a potential joint venture between U.S. chip giant Intel and Taiwan Semiconductor Manufacturing Co. (TSMC), according to reports by the Wall Street Journal. Allegedly, Washington is urging the two companies to collaborate on a chip foundry project in the United States as Intel grapples with financial difficulties.
According to Baird’s report, TSMC may deploy engineers to Intel’s wafer fabrication facilities to oversee the production of 2nm and 3nm process chips. Intel did not immediately respond to inquiries, while TSMC declined to comment.
One day before this report surfaced, U.S. Vice President J.D. Vance delivered a speech in Paris, strongly advocating for American-made chips. He emphasized that the most advanced AI chips would continue to be designed and manufactured in the U.S., a statement that sent Intel’s stock soaring.
Taiwanese senior industry analyst Chen Tzu-ang (陳子昂) weighed in on Thursday, noting that Intel’s underperformance has rendered it a liability in Washington’s eyes. If the U.S. government is indeed pursuing this strategy, he said it is a clever move—revitalizing Intel’s existing facilities with minimal investment while strengthening America’s semiconductor supply chain.
However, Chen cautioned that shifting U.S. policies or public sentiment could put the joint venture at risk, potentially exposing TSMC to significant intellectual property concerns.