Yazılar

TSMC Proposes Joint Venture with Intel’s Foundry Division to Nvidia, AMD, and Broadcom

/in /tarafından

TSMC (2330.TW) has pitched the idea of a joint venture involving Intel’s (INTC.O) foundry division to major U.S. chip designers, including Nvidia (NVDA.O), Advanced Micro Devices (AMD.O), and Broadcom (AVGO.O), according to sources familiar with the discussions. Under the proposal, TSMC, the world’s leading contract chipmaker, would oversee Intel’s foundry operations, which focus on manufacturing chips tailored to customer needs, but TSMC would retain no more than 50% ownership.

The proposal has been discussed with several other firms as well, including Qualcomm (QCOM.O), as part of TSMC’s efforts to partner with chip designers. The discussions are still in their early stages, and any potential deal would require approval from the U.S. government, particularly under the administration of President Donald Trump, who has shown interest in helping Intel recover from its financial struggles. Trump is particularly invested in boosting American manufacturing and supporting companies like Intel in remaining U.S.-owned.

Intel, which reported an $18.8 billion net loss for 2024, has seen a drastic decline in its stock price over the past year. As of December 31, the book value of Intel’s foundry division’s property and plant equipment stood at $108 billion. The company’s recent struggles have pushed its board members to consider various strategic moves, including partnering with TSMC for its foundry operations.

Despite some internal opposition, Intel’s board members have expressed support for exploring a joint venture with TSMC, with Intel’s executives holding different views on the matter. Intel’s foundry division, once a crucial part of Intel’s strategy under former CEO Pat Gelsinger, is now central to the company’s efforts to return to profitability, even as Gelsinger was replaced by interim co-CEOs in December.

TSMC’s push for a joint venture is complicated by the significant differences in manufacturing processes and technologies between the two companies. Intel and TSMC currently employ distinct chipmaking methods, which could pose challenges in aligning operations. Intel has previously partnered with Taiwan’s UMC (2303.TW) and Israel’s Tower Semiconductor (TSEM.TA), offering some precedent for potential collaboration, but the specifics of how such a partnership could function remain uncertain, especially regarding the sharing of trade secrets.

While TSMC’s interest is to involve Intel’s advanced manufacturing customers in the venture, discussions have also centered around Intel’s 18A manufacturing process, a key area of contention in the negotiations. Intel executives have claimed that its 18A technology surpasses TSMC’s 2-nanometer process, with Nvidia and Broadcom already testing Intel’s manufacturing capabilities, alongside AMD exploring the potential of Intel’s processes for its chips.

Who is Lip-Bu Tan, Intel’s New CEO?

/in /tarafından

Intel has appointed Lip-Bu Tan as its new CEO, effective March 18, as the company struggles to recover from a challenging period. Tan, a highly regarded semiconductor industry veteran, had long been considered a strong contender for the top role after Intel ousted its previous CEO, Pat Gelsinger, last year.

Tan, 65, is a Malaysian-born executive with an extensive background in both technology investment and chipmaking. He studied physics at Nanyang Technological University in Singapore before pursuing a master’s degree in nuclear engineering from the Massachusetts Institute of Technology (MIT). He also holds an MBA from the University of San Francisco.

Tan is well-known in the semiconductor sector, having served in various leadership roles. He is the chairperson of Walden International, a San Francisco-based venture capital firm, which he has led since 1984. From 2009 to 2021, Tan served as the CEO of Cadence Design Systems, an Intel supplier and chip-design maker.

Throughout his career, Tan has been involved with major technology companies. He has served on the boards of Hewlett Packard Enterprise and SoftBank Group. Tan was appointed to Intel’s board in 2022 as part of efforts to revitalize the company and restore its leadership in the global semiconductor market. The following year, Intel expanded his responsibilities to include overseeing manufacturing operations. However, Tan stepped down from the board in 2023 after disagreements with the company’s direction.

In his first letter to Intel employees, Tan emphasized his commitment to keeping Intel’s design and manufacturing businesses intact, signaling that he would not pursue splitting them up. He expressed confidence in the company’s potential to turn things around, stating, “Intel plays an essential role in the technology ecosystem, both in the U.S. and around the world. And, together, I’m confident we can turn our business around.”

Intel Wins Lawsuit Over Foundry Losses, $32 Billion Market Drop

/in /tarafından

Intel has successfully defended itself against a shareholder lawsuit that accused the company of fraudulently hiding issues within its foundry business, which led to significant financial losses and a $32 billion drop in market value in a single day. The lawsuit stemmed from Intel’s failure to immediately disclose a $7 billion operating loss in its foundry business for the fiscal year 2023, which wasn’t revealed until April 2024.

U.S. District Judge Trina Thompson, in a decision made public on Tuesday, dismissed the claims, ruling that shareholders had incorrectly linked the $7 billion loss to Intel’s Foundry Services business. The judge further noted that statements made by former CEO Patrick Gelsinger regarding the company’s “significant traction” and “growing demand” for its foundry services were not misleading, as they referred to specific customers, not the overall revenue, which had been declining.

The lawsuit had accused Intel of inflating its stock price from January 25 to August 1, 2024, during which time the company posted a quarterly loss of $1.61 billion, announced layoffs of more than 15,000 employees, and suspended its dividend to save $10 billion in 2025. As a result, Intel’s stock price dropped by 26% the following day, causing a loss of $32 billion in market capitalization.

The Santa Clara-based company, which has faced growing competition from chipmakers like Nvidia, AMD, Samsung, and TSMC, has struggled to capitalize on the artificial intelligence boom. Intel ousted Gelsinger as CEO in December.

The case, titled In re Intel Corp Securities Litigation, was filed in the U.S. District Court for the Northern District of California.