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Investing.com -- Intel (NASDAQ:INTC) and Taiwan Semiconductor Manufacturing Co. (TSMC) are in discussions to form a joint venture to manage Intel’s chipmaking facilities, according to a report from The Information, citing sources involved in the talks. The proposed deal would see TSMC acquiring a 20% stake in the new company, with the majority of shares held by Intel and other U.S. semiconductor firms.
The joint venture would encompass some of Intel’s existing chip foundries. Instead of a capital investment, TSMC is considering sharing its chipmaking techniques with Intel and training Intel staff to use these methods in exchange for its 20% stake.
The specifics of how the rest of the new entity would be funded are yet to be determined. The talks are ongoing and no final agreement has been reached. Some Intel executives have expressed concerns that the deal could lead to extensive layoffs and subsume Intel’s chipmaking technology.
The tentative agreement has the support of Commerce officials involved in facilitating the negotiations.
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