Key takeout
Intel (INTC) shares have skyrocketed more than 7% in pre-market trading on Wednesday following reports that Taiwan Semiconductor Manufacturing Company (TSM) approached US chip designers NVIDIA (NVDA), Advanced Micro Devices (AMD) and Broadcom (Avgo) to organize the joint venture and operate US Chipmaker’s Foundry Division.
“Qualcomm (QCOM) is also being marketed by TSMC, according to one of the sources and one of the other,” the report states.
According to Reuters, TSMC, the world’s largest contracted chip maker, operates the foundry division that manufactures custom chips for other companies. The report said it said the consultation was in early stages, but TSMC said it does not own more than 50% of the JV.
Reuters added that the Trump administration asked TSMC to help Inter turn it around. Intel’s Foundry Business is in the spotlight as a potential beneficiary of the Trump administration’s stated goal of ensuring that artificial intelligence chips are designed and manufactured domestically.
Intel, TSMC, Nvidia, AMD, Broadcom, and Qualcomm did not respond immediately to Investopedia requests for comments.
Intel’s shares lost about 55% of its value in the last 12 months that entered Wednesday.
