intel courts tsmc amid market struggles
taipei, Friday, 26 September 2025.
intel is reportedly seeking investment from or a manufacturing partnership with tsmc. This move comes as intel aims to strengthen its position in the semiconductor market. The company faces increasing competition from amd and nvidia. This potential deal emphasizes tsmc’s growing importance in the global chip supply chain. The us government already owns a 10% stake in intel. Nvidia invested $5 billion for 4% of intel. Softbank provided $2 billion capital injection in August.
Potential tsmc stake
In April 2025, Intel and TSMC had initial discussions about a possible joint venture [3]. TSMC might have acquired a 20% stake in this new entity [3]. Intel CEO Lip-Bu Tan is actively seeking partnerships to revitalize the chipmaker [1]. Intel’s efforts to secure external investments began before and accelerated after the U.S. government acquired a 10% stake [1]. These moves suggest Intel is exploring multiple avenues to regain its competitive edge in the semiconductor industry [1][3].
manufacturing capacity and market impact
A partnership between Intel and TSMC could significantly influence manufacturing capacity [1]. Intel outsources 30% of its chip production to TSMC [7]. This collaboration could enable Intel to produce its next-generation ‘Raptor Lake’ processors using TSMC’s advanced manufacturing capabilities [3]. TSMC is also focusing on silicon carbide, a key material for heat dissipation in the AI era, potentially benefiting data centers and AI systems using Nvidia GPUs [7]. Intel is planning to increase the price of ‘Raptor Lake’ processors by over 10% in Q4 2025 [3].
geopolitical considerations and trump’s influence
Geopolitical factors, particularly those involving former President Trump, add complexity [6]. Trump has previously linked Intel’s decline to Taiwan, claiming Taiwan stole U.S. semiconductor business [6]. He suggested Intel’s production had moved to Taiwan, contributing to its struggles against TSMC [6]. Trump also implied his tariff policies would encourage companies to return to the U.S., revitalizing Intel [6]. Analysts suggest Trump might aim to control TSMC’s Fab 21 plant in the U.S. to leverage TSMC’s technology for Intel [6].