The shares of $INTC (-4,07%) rose by 7.2 percent on Wednesday. This is due to new speculation from the supply chain that the US government could put pressure on the chip company to enter into a strategic partnership with Taiwan Semiconductor Manufacturing (NYSE:TSM).
US government could push Intel into joint venture with TSMC
Intel has been in crisis for years. The foundry business in particular is causing problems - an area that the Group spun off into an independent subsidiary in 2024. The USA wants to strengthen domestic chip production, and as the only US manufacturer with the corresponding capacity, Intel plays a key role in this. However, the question still remains as to how the foundry business can be put on a stable footing.
Now there are rumors in the industry that the US government could push for close cooperation between Intel and TSMC. This was reported by Baird analyst Tristan Gerra, citing industry information. According to the report, TSMC could send engineers to Intel's state-of-the-art 3nm and 2nm factories to ensure their success. The factories could be spun off into a joint company in which Intel and TSMC would be involved - but operationally under the management of the Taiwanese industry leader. The joint venture could also benefit from government subsidies under the CHIPS Act.
"There is no confirmation yet, and implementation could take a long time. But the idea makes perfect sense," says Gerra.
Relief for Intel - but also risks
Such a move would have several advantages for Intel. On the one hand, the Group could conserve its financial resources and concentrate more on developing its own chips and platform solutions. Secondly, a successful foundry could attract new customers from the industry who are looking for alternative production locations outside Asia.
Despite these potential opportunities, Gerra remains cautious. Although he sees long-term potential, he has left his rating for Intel shares at "Neutral" with a target price of USD 20.
It remains to be seen whether the rumors will come true. What is clear, however, is that Intel is in a tight spot - and a partnership with TSMC could be one of the few options for catching up in the semiconductor industry.