Intel, in 2024, reported a net loss of $18.8 billion (roughly Rs. 1,60,107 crore), its first since 1986.
Intel shares lost 60 percent of their value in 2024
Photo Credit: Reuters
Intel and Taiwan Semiconductor Manufacturing Co have reached a preliminary agreement to form a joint venture to operate the US chipmaker's factories, the Information reported on Thursday, citing two people involved in the discussions.
TSMC, the world's largest contract chipmaker, will take a 20 percent stake in the new company, the report said.
The White House and Commerce department officials have been pressing TSMC and Intel to strike a deal to resolve the long-running crisis at Intel, the report added.
Intel and TSMC declined to comment, while the White House did not immediately respond to a Reuters request for comment.
Reuters reported in March that TSMC had pitched Nvidia, Advanced Micro Devices and Broadcom to take stakes in a joint venture that would operate Intel's factories, after the US administration requested the Taiwanese chipmaking giant to help turn around the troubled US icon.
Intel in March appointed former board member and chip industry veteran Lip-Bu Tan as its CEO to revive its fortunes after it missed out on the artificial intelligence-driven semiconductor boom while plowing billions of dollars into building out its chip-making business.
The company's efforts to manufacture chips for external clients have faced challenges as it fell short of providing the level of customer and technical service as rival TSMC, leading to delays and failed tests, former executives have told Reuters.
Intel reported 2024 net loss of $18.8 billion (roughly Rs. 1,60,107 crore), its first since 1986, driven by large impairments.
Shares of the company lost 60 percent of their value in 2024, compared with an over 23 percent rise in the benchmark S&P 500 index.
The shares have recovered some of those losses this year and are up nearly 12 percent.
Last month, TSMC said at a press event that it plans to make a fresh $100 billion (roughly Rs. 8,51,634 crore) investment in the US that involves building five additional chip facilities.
© Thomson Reuters 2025
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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