[News] Intel Reportedly Explores TSMC Investment, Raising Fears of Tech Outflow

According to Wall Street Journal, sources indicate that Intel has approached TSMC to discuss potential investments or manufacturing partnerships. The move comes shortly after Bloomberg revealed that Intel had reportedly been in talks with Apple about securing an investment.

Sources cited by the Wall Street Journal say that these efforts were already under way before President Trump expressed interest in the company last month, but have intensified since the U.S. acquired a 10% stake.

The Trump administration has been using its influence to lift Intel’s fortunes. The Wall Street Journal notes that Commerce Secretary Howard Lutnick and other officials have pushed tech companies to work more closely with Intel. The report also indicates that recent developments have raised expectations among investors and industry peers that Intel could regain relevance, driven by the push for a more diversified chip supply.

Still, the Wall Street Journal notes that doubts remain over Intel’s ability to deliver the production capacity and performance standards required for cutting-edge chips, as well as over how a long-discussed separation of its manufacturing arm could be carried out.

The Wall Street Journal highlights that Intel has long faced pressure from shareholders to spin off its fabrication business and concentrate on chip design, though CEO Lip-Bu Tan has argued it remains critical to U.S. national security. Barron’s, citing analysts, adds that the simplest option for the company would be to sell or shut down its manufacturing operations rather than attempt to compete directly with industry leader TSMC.

Concerns Over Technology Leakage in Potential TSMC–Intel Partnership

Meanwhile, for TSMC, Economic Daily News, citing institutional investors, reports that collaboration with Intel would be a lengthy and complex process involving many parties, with the main concern being potential technology leakage. The report notes that this risk is critical, as TSMC’s long-term growth still depends on AI chip demand and its technological edge. At present, TSMC holds over 90% market share in advanced nodes below N3, with process capabilities well ahead of competitors.

The Economic Daily News further notes that TSMC Chairman C.C. Wei has explicitly stated the company will not consider acquiring or taking a stake in Intel’s fabs, in order to avoid technology leakage and potential competitive risks. The report also points out that if TSMC were to invest in Intel, the U.S. government would carefully evaluate the move, given Intel’s involvement in numerous defense and national security–related contracts.

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(Photo credit: Intel)