Intel on the way to disappear? Reporting the huge takeover

The Taiwanese TSMC chip company contacted American chip manufacturers NVIDIA, AMD and Broadcom, with a proposal to invest in a joint venture to run Intel’s chip production activity – according to Reuters report. According to the offer, TSMC will manage Intel’s production division’s activities, which is responsible for chip manufacturing for third-party customers, but will not hold more than 50% of the venture. It was also reported that Qualcom was also invited to join.

The conversations between the companies are in early stages, but they are conducted on the basis of the Trump administration efforts to restore Intel and strengthen the American chip industry. According to the report, the transaction will require the approval of the administration, which prefers to avoid the transfer of Intel control to foreign hands.

Intel’s share increased by more than 7% in US preliminary trading following the report, while NVIDIA, AMD, Broadcom and Pavercom stocks recorded easier increases of 0.8% -1.5%. TSMC’s share is locked in an increase of 1.8% in trading in Taiwan.

In Reuters, there are gaps between Intel and TSMC, especially when it comes to production technologies. Intel claims that its advanced production process, 18A, is preferable to TSMC’s 2 Nanomatri technology-a point that was a dispute focus. While a number of companies expressed interest in purchasing parts of Intel, the management reported to sell its chip planning division separately from production plants. In addition, although some members of the board support the deal, there is opposition from senior officials in the company.

Negotiations are held in parallel with the TSMC announcement of $ 100 billion in the US, which includes the establishment of five new manufacturing plants. The move, announced in Trump status, is part of the strategy to expand the company’s operations in the US market. As part of the efforts to establish new manufacturing plants, the company has given a commitment to invest $ 25 billion in establishing a new plant within its production campus in Kiryat Gat.