Sizzling hot rumor calls for TSMC, with help from Qualcomm, to take 20% stake in Intel Foundry Services
A very hot rumor taking the February chill out of the weather has Intel selling a 20% stake in its Intel Foundry Services (IFS) unit to TSMC. Wall Street certainly feels that something is up after Intel's stock rose 22.5% over the last five trading days. That move started after Vice President J.D. Vance made comments in Paris about the U.S. manufacturing the most advanced chips in the U.S.
As a result of the deal, Intel would produce the most advanced semiconductors in the U.S. as TSMC would run Intel's foundries following the closing of the rumored transaction. However, running Intel's fabs might not be such a seamless process for TSMC. Another report, this one from Taiwan's Economic Daily, says that TSMC might obtain a minority stake in Intel with help from fabless chip designers Qualcomm and Broadcom.
Any deal involving TSMC taking down a minority stake in Intel would require regulatory approval from the Committee on Foreign Investment in the United States (CFIUS), the Federal Trade Commission (FTC), the Department of Justice (DOJ), and the Commerce Department. Qualcomm and Broadcom can help the deal get done by entering orders with the combined Intel-TSMC foundry.
The Economic Daily report says that the Trump administration is hoping that TSMC acquires a 20% stake in Intel Foundry Services (IFS) since it would boost the administration's Made in America plans. The report also says that TSMC could make its investment via a cash injection or by providing technology to Intel. Broadcom and Qualcomm's participation in the deal would help them compete with Chinese chip designer MediaTek.
Unlike Huawei, which is banned from having its chips produced using the most advanced process nodes, MediaTek has no such restrictions allowing it to have its chips manufactured at cutting-edge nodes. As a result, MediaTek can compete against Qualcomm and Broadcom on price.
Intel's stock is slowly trying to recover after the fiasco last year. In 2025, Intel's shares are up 16.7% year-to-date. But the real story is that over the last 12 months, Intel's shares are down 46%. The company is trying to become competitive in the contract foundry business which is led by TSMC followed by Samsung Foundry. TSMC has a client list that includes some of the top names in tech including Apple, AMD, Nvidia, Qualcomm, Broadcom, and MediaTek.
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