Intel Seeks Partnerships Amid Struggles in AI and Manufacturing Race

Intel has reportedly approached Taiwan Semiconductor Manufacturing Company (TSMC) to discuss potential investments or partnerships, according to the Wall Street Journal. The move comes as Intel works to attract outside investors to revive its struggling business. Sources noted that these talks began before U.S. President Donald Trump expressed interest in the company, though momentum has increased since the U.S. government acquired a 10% stake.

This follows a Bloomberg report stating that Intel is in discussions with Apple about a possible investment. The strategy reflects Intel’s ongoing efforts to secure external backing as it attempts a turnaround under CEO Lip-Bu Tan. Once a leader in the semiconductor industry and a driving force behind Silicon Valley, Intel has fallen behind rivals like Nvidia and AMD in the rapidly expanding artificial intelligence chip market.

In recent months, Intel has attracted significant capital infusions. Nvidia committed to a $5 billion investment for a 4% stake, while SoftBank injected $2 billion in August. These deals highlight the urgency for Intel to regain competitiveness as it pours billions into contract manufacturing — an area where it has struggled to compete with TSMC and to win customers.

Reports suggest that Intel and TSMC had already considered forming a joint venture earlier this year, with TSMC potentially taking a 20% stake, according to The Information. Such a partnership could give Intel a much-needed boost as it seeks to modernize its manufacturing operations and capture more of the growing demand for advanced chips.

Despite these discussions, both Intel and TSMC declined to comment on the reports. For now, Intel’s push to secure global partners reflects its urgent bid to reclaim relevance in the semiconductor race, particularly as AI innovation reshapes the industry.