Intel (INTC) stock rose on Wednesday in a report that rival Taiwan Semiconductors (TSM) is in talks with a group of chipmakers, including NVIDIA (NVDA) and AMD (AMD).
According to Reuters, the consortium, which also includes Broadcom (AVGO), will take over Intel’s Foundry Business. This is responsible for building chips for both Intel and third-party contractors. Intel reported a net loss of $18.8 billion in 2024. In the foundry segment, total operating income reached a loss of $11.6 billion per year.
Intel shares rose about 3% in afternoon trading, following the report, and are up 1.6% per year. However, it zooms out further, with Intel’s stock price falling 54% over the past 12 months.
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INTC TSM NVDA
The share price of AI chip giant Nvidia is off 14% per year due to concerns that AI Trade is taking its course and tariffs and export controls will advance the company’s revenue. Nvidia’s shares have grown 24% over the past year.
Shares of TSMC, Broadcom and Nvidia rose in the news.
Intel did not comment on the report.
The move comes as the Trump administration works to ensure the future of Intel’s chip construction business in the United States. Intel is the largest chipmaker in the country, but the US accounts for only 12% of global chip production, starting from 37% in 1990.
During the Covid-19 pandemic, these declines have been severely mitigated during the COVID-19 pandemic, when it affected everything from consumer electronics to car sales. US officials also raised concerns about the possibility of a geopolitical conflict, including the possibility of China entering Taiwan, and natural disasters that disrupt chip cargo violations to the US could dramatically affect the large belts of the economy.
The Trump administration has previously called for acquiring a portion of Intel’s business in the hopes that TSMC will support it for a long time.
Former Intel CEO Pat Gelsinger has tried to spin up the company’s casting segment to third-party chip makers to accommodate TSMC’s own semiconductor manufacturing business.
However, so far, efforts have been slow, with Intel’s board kicking out Gelsinger last year. Co-CEOS David Zinsner and Michelle Johnston Holthaus are currently piloting the ship until the board finds a permanent replacement for Gelsinger.
Both Intel and TSMC have received billions of dollars via the Chips Act to help pay for new US manufacturing facilities. On March 3, TSMC said it would invest $100 billion to build new plants in Arizona, in addition to the $65 billion already allocated to the area.
