Wild rumor: TSMC to co-run spun-off Intel fabs

The Intel rumor mill went into overdrive after an analyst suggested the firm’s foundry division could be spun off to become a joint venture co-owned by TSMC and co-funded by the US government. Citing rumors from the Asian semiconductor supply chain, investment bank Baird wrote in a note to clients that TSMC would send engineers to Intel ahead of a deal to ensure the viability of new manufacturing processes, according to the Wall Street Journal.

It’s unclear from the WSJ report whether the US government is pushing for the move, but Asian media suggest this is the case. The Trump administration has floated tariffs on Taiwanese semiconductors in an effort to boost domestic manufacturing. Speaking at an AI summit in Paris this week, US Vice President JD Vance vowed that the most advanced chips will be made in the US. “The Trump administration will ensure that the most powerful AI systems are built in the US with American-designed and manufactured chips,” he said.