(Reuters) – Taiwanese contract manufacturer TSMC is considering taking a controlling stake in chipmaker Intel’s factories at the request of U.S. President Donald Trump’s officials, Bloomberg News reported on Friday.
Trump’s team raised the idea of a deal between the two firms in recent meetings with officials from TSMC, and they were receptive, Bloomberg reported, citing a person familiar with the matter.
Such a deal could act as a financial lifeline for Intel, which has struggled to capitalize on a boom in demand for AI chips and has staked its turnaround on becoming a contract manufacturer of chips for other companies.
Intel shares fell more than 4% following the report while TSMC’s U.S.-listed shares rose about 1.7%.
Intel, which ceded its manufacturing technology edge to TSMC, is among a few chipmakers that both design and manufacture semiconductors.
It is unclear whether Intel is open to a transaction, according to the report.
The talks are in the very early stages, and the exact structure of a potential partnership has not been established, but the intended result would have TSMC fully operating Intel’s U.S. semiconductor factories, according to the report.
TSMC and Intel declined to comment. The White House did not immediately respond to a Reuters’ request for comment.
The arrangement may involve having major American chip designers take equity stakes, along with support from the U.S. government, Bloomberg reported, adding that it meant the venture would not solely be owned by a foreign company.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Anil D’Silva)
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