TSMC Proposes Joint Acquisition of Intel Foundry with Key U.S. Peers
Deal News | Mar 12, 2025 | EIN
Taiwan Semiconductor Manufacturing Company (TSMC) has proposed a joint investment in Intel's foundry, seeking involvement from Nvidia, AMD, Broadcom, and Qualcomm. The aim of this initiative is to share the load with its American counterparts and benefit from aligning with the priorities of the U.S. government. Under this proposal, TSMC would operate Intel's foundry but not own a majority stake, a move favored by the Trump administration to prevent full foreign ownership of the foundry division. TSMC's ambition is to partly defuse criticism of a foreign takeover while simultaneously securing M&A approval more easily and remaining eligible for U.S. semiconductor subsidies. The context of this proposal includes TSMC's significant investment plans, encompassing an additional $100 billion investment in U.S. operations, expanding the total U.S. investment to $165 billion. The collaboration with U.S. firms also signals strategic positioning against competitors like Samsung Electronics, which is currently facing challenges in gaining greater foundry market share. However, there remains uncertainty regarding the interest level of these companies in participating in a potentially burdensome investment. While pressured by the U.S., some of these firms are cautious due to cost concerns and strategic priorities elsewhere.
Sectors
- Semiconductor Manufacturing
- Technology
- Private Equity and Venture Capital
Geography
- United States – Most companies potentially involved in the joint investment are based in the U.S. Furthermore, the investment aligns with U.S. governmental policies on semiconductor dominance.
- Taiwan – TSMC, the primary company pushing for the deal, is based in Taiwan.
Industry
- Semiconductor Manufacturing – This article highlights a prospective acquisition and investment in Intel's foundry, which is part of the semiconductor manufacturing industry.
- Technology – The involvement of major technology companies like Nvidia, AMD, Broadcom, and Qualcomm aligns this article with the broader technology sector.
- Private Equity and Venture Capital – The article discusses potential investments and partnerships which are central themes in private equity and venture capital industries.
Financials
- $165 billion – This is the total amount TSMC has committed to investing in U.S. operations including five additional foundries.
- $65 billion – Existing investment amount by TSMC in the U.S. prior to the announced $100 billion investment.
- 240 trillion won – Approximate equivalent of the total investment in U.S. dollars.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| TSMC | Bidding Company | Companies | Taiwan Semiconductor Manufacturing Company, seeking proposes joint investment in Intel's foundry. |
| Intel | Target Company | Companies | The foundry division of Intel is the focus of the potential investment. |
| Nvidia | Other Company | Companies | A potential joint investor approached by TSMC for investment in Intel's foundry. |
| AMD | Other Company | Companies | Advanced Micro Devices, another company approached by TSMC for potential joint investment. |
| Broadcom | Other Company | Companies | Undertaken by TSMC as a possible partner in the investment of Intel's foundry. |
| Qualcomm | Other Company | Companies | An additional U.S. firm approached to join TSMC in investing in Intel's foundry division. |
| White House | Government | Government | The U.S. government at large has shown interest in preventing full foreign ownership of Intel's foundry. |