Extracts:
Over the past few months, Frank Yeary, the interim executive chairman of Intel, has spoken with administration officials and leaders of Taiwan Semiconductor Manufacturing Company about a deal that would separate Intel’s ailing manufacturing business from its semiconductor design and product business, according to four people with knowledge of the plan, who spoke on the condition of anonymity.
TSMC, which produces an estimated 90 percent of the world’s most advanced semiconductors, would assume control of Intel’s manufacturing business and take a majority stake in the business alongside a consortium of investors that could include private equity firms and other tech companies, the four people said.
The Trump administration has encouraged TSMC to do the deal. Howard Lutnick, President Trump’s nominee for commerce secretary, has been involved in the conversations and considers them one of the most consequential challenges of his new job, two of the people familiar with the discussions said.
Late last year, Intel’s board approached TSMC to gauge its interest in some sort of partnership, two of the people familiar with the talks said. In January, TSMC’s chief executive, C.C. Wei, met separately with Mr. Lutnick and Mr. Yeary to discuss how a tie-up might work.
Mr. Yeary has been speaking to Mr. Lutnick regularly about the idea since then, three of these people said. The Intel chairman’s interest in cleaving the company has also opened the door for suitors interested in acquiring Intel’s product business, including Qualcomm.
Some details of the discussions were previously reported by
Digitimes, a Taiwanese news outlet, and
Bloomberg.
Intel and TSMC declined to comment. Mr. Lutnick did not respond to a request for comment.
A Qualcomm spokeswoman declined to comment.
TSMC could address Mr. Trump’s demands by simply building more manufacturing capacity in the United States, said Stacy Rasgon, a semiconductor analyst at Bernstein Research. TSMC, which
received up to $6.6 billion in grants from the CHIPS Act, is building three factories in Arizona and has the ability to expand there.
https://archive.is/cQM6a