TSMC Denies Intel Joint Venture Rumors Amid Mounting Pressure on US Chipmaker

Taiwan Semiconductor Manufacturing Co. (TSMC) has moved to dispel speculation of a potential partnership with Intel, denying reports that the world’s leading contract chipmaker was considering a joint venture or investment in its struggling American rival. The statement follows a Wall Street Journal report suggesting Intel had approached TSMC about collaboration, claims the Taiwanese company firmly rejected.

“TSMC has never entered discussions with any company on establishing a joint venture or transferring technology,” the firm said, reiterating remarks made previously by Chairman C.C. Wei. Rumors of a TSMC stake in Intel have circulated for months, but the company has consistently dismissed them.

Despite the denial, market reaction was swift. TSMC’s American depositary receipts slipped 1.44 percent in U.S. trading, reflecting investor concern that any tie-up with Intel could jeopardize the company’s neutral standing. Analysts cautioned that closer cooperation might risk technology leaks or embolden a direct competitor, undermining TSMC’s reputation as a pure-play foundry serving multiple global clients.

For Intel, the speculation highlights its precarious position. The company has endured years of manufacturing delays, restructuring pressures, and weakening consumer demand. While recent investments from Washington, SoftBank, and Nvidia have bolstered its balance sheet, long-term uncertainty remains. The U.S. government secured a 10 percent equity stake in exchange for $5.7 billion in remaining CHIPS and Science Act funding, SoftBank invested $2 billion, and Nvidia injected $5 billion tied to plans for co-developed processors blending Intel’s x86 CPUs with Nvidia graphics.

Intel CEO Lip-Bu Tan has responded with sweeping cost-cutting measures, including over 12,000 job cuts—around one-fifth of its workforce—and the spinoff of its loss-making Network and Edge Group. The strategy is aimed at narrowing Intel’s focus and reviving its competitiveness in core semiconductor technologies.

Yet technical challenges persist. Production yields for Intel’s 18A process node, designed to rival TSMC’s most advanced offerings, remain under pressure. Tan has warned that development of the next-generation 14A node may be canceled unless Intel secures major customer commitments. The company has conceded that its foundry division is unlikely to achieve profitability before 2027, with success hinging on whether 14A moves forward.

These obstacles underscore why TSMC is seen as reluctant to engage in Intel’s turnaround. Partnering with a rival that operates its own foundries could compromise TSMC’s independence, expose it to competitive risks, and add geopolitical complications. For now, analysts believe TSMC will avoid collaboration unless clear strategic benefits emerge—leaving Intel to rely on its recent investors as it navigates a difficult recovery.