intel and tsmc in talks: a surprising alliance?

intel and tsmc in talks: a surprising alliance?

2025-04-03 general

san francisco, Thursday, 3 April 2025.
The semiconductor world could be turned on its head. Intel and TSMC are reportedly discussing a joint venture for chip manufacturing. The deal could pair Intel’s design expertise with TSMC’s manufacturing strength. TSMC might acquire a 20% stake in Intel’s chipmaking facilities. This collaboration, if realized, could mark a significant shift in the competitive dynamics of the global chip industry. The alliance comes as intel is trying to return to prominence in chip manufacturing.

Intel’s manufacturing ambitions

Intel’s 18A process is currently in the risk production phase [4]. This process incorporates PowerVia backside power delivery and RibbonFET gate-all-around transistors [4]. Intel views this technology as critical for surpassing TSMC and reclaiming its position as the leading semiconductor process technology provider [4]. The company formally introduced its 18A process as part of its ‘Vision 2025’ [3]. The initial products utilizing this technology are already being sampled, with the company progressing towards volume production [3].

TSMC’s steady approach

TSMC is taking a more conservative approach to its 2nm process [4]. The company plans to implement Nanosheet transistors in the second half of this year [4]. Super Power Rail technology is slated for introduction in the second half of 2026 [4]. While this strategy is perceived as less aggressive, TSMC’s speed and stability in process technology are well-regarded [4]. TSMC held a 2nm production expansion ceremony at its Kaohsiung factory on March 31 [5].

Samsung’s commitment and Rapidus’s entry

Samsung is heavily invested in semiconductor process technology [4]. The company is actively pushing the development of its GAAFET transistor technology, despite facing challenges with yield [4]. Samsung is focusing on producing its Exynos 2600 chip and plans to begin production in May [4]. Rapidus, a Japanese company, is also entering the race, with its 2nm fab pilot line in Hokkaido, Chitose, scheduled to start this month, targeting mass production by 2027 [4].

The global GENAI market is projected to reach $644 billion in 2025 [3]. PYMNTS.com reported that information firms are leading in GenAI ROI, with 65% reporting positive results [6]. A PYMNTS report analyzed GenAI ROI across industries, surveying 540 C-suite executives between March and November 2024 [6]. The information sector reported 65% of firms having very positive ROI [6]. Manufacturing firms are leveraging GenAI for production process feedback, with 56% adoption [6].

Financial implications and recent activity

In other chip industry news, SK Hynix finalized its acquisition of Intel’s NAND flash memory business for approximately $8.85 billion [5]. Onsemi announced plans to acquire Allegro Microsystems for $6.9 billion [5]. Intel is set to begin mass production of 3nm chips at its Fab34 in Ireland later this year [5]. These moves, along with the potential Intel-TSMC joint venture, highlight the ongoing restructuring and competitive intensity within the semiconductor landscape [1][2].

Bronnen


joint venture manufacturing