intel and tsmc consider us chipmaking joint venture

2025-05-20 tsmc

Phoenix, Tuesday, 20 May 2025.
intel and tsmc are in talks for a joint venture to run intel’s us factories. the deal could face hurdles related to chip subsidy rules. a key issue is intel’s shareholding. if it drops below 50%, subsidies might be reclaimed. this adds complexity. the partnership could also boost competition in the semiconductor market. analysts are concerned about the compatibility of intel and tsmc’s chip manufacturing processes. the deal requires regulatory approval. a joint venture could attract major ic design firms, intensifying competition.

tsmc’s perspective

tsmc has reportedly proposed that nvidia, amd, and broadcom invest in a joint venture to operate intel’s fabs [4]. tsmc’s stake in this venture would not exceed 50% [4]. this move could allow tsmc to expand its manufacturing footprint in the us while sharing the financial burden and operational risks with other industry players [GPT]. the potential partnership comes as tsmc faces rising costs for overseas expansion and seeks to maintain its competitive edge in advanced process technologies [5].

manufacturing capacity and technology

tsmc’s 2nm process is gaining traction, with defect rates better than its 3nm and 7nm processes during development [2]. mass production is expected to begin in the fourth quarter of 2025 [2]. amd’s next-generation zen 6 epyc processors will use tsmc’s n2 process [2]. nvidia may use the n2 node in its rubin architecture [2]. tsmc’s 2nm process uses a gate-all-around field-effect transistor (gaafet) architecture, enhancing transistor density and reducing power consumption [2].

financial implications for tsmc

tsmc is increasing prices for its advanced process technologies [5]. the cost of 2nm wafers is expected to rise by 10%, from $30,000 to $33,000 [5]. this price hike is driven by rising costs associated with overseas fab construction and the need to recoup capital expenditures [5]. despite the potential for short-term order fluctuations due to price increases, analysts maintain long-term confidence in tsmc’s technological advantage and production capacity [5]. tsmc’s stock dipped 0.37% to $193.5 following the news, with its market capitalization remaining at $1 trillion [5].

geopolitical considerations

the potential joint venture and tsmc’s expansion in the us are influenced by geopolitical factors [5]. us government policies and incentives, such as the chips act, encourage domestic chip manufacturing [7]. taiwan’s “de-sinicization” strategy further pushes tsmc to shift resources overseas, increasing operating costs in the us [5]. a joint venture with intel could help tsmc navigate these geopolitical pressures while securing its position in the us market [GPT].

competition and market dynamics

the joint venture could intensify competition in the semiconductor market [1]. if successful, the partnership could attract more ic design firms, increasing competition [1]. tsmc faces competition from samsung, which is also developing 2nm technology [2]. intel’s 18a process is also a potential competitor, incorporating technologies like backside power [2]. tsmc’s ability to maintain its technological lead and manage costs will be crucial in this competitive landscape [5].

Bronnen

Intel TSMC Joint venture