The Information reports that Apple chipmaking partner Taiwan Semiconductor Manufacturing Company Limited (TSMC) has reached a preliminary agreement to take over the operation of Intel’s chipmaking facilities. TSMC will hold a 20% piece of the newly merged firm, with Intel and other semiconductor makers owning the rest of the shares.
Discussions are ongoing, so things could change before a final agreement is met. The deal could possibly see TSMC sharing some of its chipmaking processes with Intel, while also training the U.S. chipmaker’s employees in the TSMC way of doing things.
The Intel/TSMC deal was reportedly initiated by U.S. Donald Trump’s administration. Trump has long pushed for bringing advanced chipmaking back inside U.S. borders, and is also looking to rescue Intel, which lost $18.8 billion in 2024, due to its investments in chip manufacturing and a weakening PC market.
Intel and TSMC have long been bitter rivals in the processor game. Apple began using Intel x86-64 processors in its Mac lineup in 2006, using them until 2020, when Apple began using its own custom processors, called Apple Silicon, which are manufactured by TSMC, who at the time was Apple’s chipmaking partner for its iPhones, iPads, and other non-computer devices.
While Intel has traditionally designed its own chips, with PC manufacturers building their machines around the processors’ capabilities, TSMC manufactures custom chips based on their customers designs. TSMC’s customers include Apple, AMD, ARM, Broadcom, Nvidia, and others.
TSMC’s focus on manufacturing has allowed it to produce more economically-priced chips, with larger production yields.
Internally at Intel, there is concern that the deal will result in layoffs, ridding Intel of several engineering positions, and requiring the company to sell of much of its equipment, as they adopt TSMC’s fabrication processes.
