Intel and TSMC partner on US Chip Venture

Intel and TSMC are teaming up for a new chipmaking venture aimed at ramping up advanced semiconductor production in the US, per TechCrunch.

The plan: TSMC will hold a 20% stake in the new venture, bringing its world-class chipmaking expertise and training Intel’s staff on advanced processes.

Intel, on the other hand, will offer up its factories and existing infrastructure—helping the venture move fast without starting from scratch.

For context, Intel has been struggling to be relevant in the new semiconductor landscape for a while now. The company’s AI chip standing is weak, its legacy CPU's aren’t seeing much demand, and multiple executive changes have left the operation headless. TSMC is expected to teach them the new ways.

Zoom out: global chip demand is booming, with the market set to cross $1 trillion by 2030, powered by AI, cloud, EVs, and smart devices.