TSMC Weighs Stake in Intel’s U.S. Factories Amid Expansion Plans

TSMC (NYSE:TSM) is reportedly considering acquiring a stake in Intel’s (NASDAQ:INTC) U.S. chip factories at the Trump administration's request, as part of efforts to bolster domestic semiconductor production. The world’s largest contract chipmaker, which already operates a foundry in Arizona, has plans to expand its U.S. operations, though discussions remain in early stages, according to the Wall Street Journal and Bloomberg.

Broadcom Inc. (NASDAQ:AVGO) is also reportedly in contention for Intel’s facilities. However, Reuters highlighted potential opposition from former President Donald Trump regarding foreign control of U.S. chip plants.

Intel continues to face declining market share and losses in its foundry segment, prompting government intervention to stabilize the industry. Analysts at Morgan Stanley (NYSE:MS) believe TSMC's decision will prioritize demand and shareholder value over rescuing Intel, though further U.S. expansion is likely. Potential import tariffs under Trump could push TSMC to increase domestic production, mitigating trade risks.

JPMorgan (NYSE:JPM) analysts remain skeptical about a TSMC-Intel joint venture without substantial financial incentives and note the White House's hesitance. However, they expect TSMC to expand its U.S. capacity, particularly in Arizona, with estimated capital expenditures exceeding $100 billion over the next decade. Such growth hinges on continued CHIPS Act support, which has significantly fueled TSMC's U.S. investments. TSMC's role as a key supplier for AI giant Nvidia (NASDAQ:NVDA) further underscores its strategic importance in the semiconductor landscape.

As TSMC navigates potential collaborations and U.S. expansion, its decisions will shape the future of the global semiconductor supply chain.