In an unexpected turn of events, it has been reported that Intel is exploring a partnership with TSMC to potentially spin off its chip manufacturing facilities. This rumor stems from an investment bank analyst who mentioned ongoing discussions between the two companies.

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The proposal suggests that TSMC would send some of its engineers to Intel’s factories to assist in their operations, forming a new entity that would be jointly owned by both firms. Although this idea sounds speculative, market reactions have been notably positive, with Intel’s shares seeing an increase of 6% upon the news breaking.

On one hand, this partnership could significantly improve the American chip industry by reducing reliance on Taiwan for semiconductor production amidst geopolitical tensions. On the other hand, the thought of TSMC gaining even more control over chip production raises concerns regarding potential monopolies in the market.

Overall, if Intel’s upcoming 18A technology isn’t as beneficial as claimed, this venture may be crucial for its future. As tensions related to global supply chains persist, this move could redefine the landscape of chip manufacturing over the next decade.