Taiwan Semiconductor Manufacturing Co (TSMC) is considering taking a controlling stake in Intel Corp’s factories at the request of Trump administration officials, a person familiar with the matter said, as the president looks to boost American manufacturing and maintain US leadership in critical technologies.

Trump officials raised the idea of a deal between the two companies in recent meetings with the Taiwanese chipmaker, the person said, and TSMC was receptive. It is unclear whether Intel is open to a transaction.

The talks are in very early stages, and the exact structure of a potential partnership has not been established. But the intended result would have the world’s largest contract chipmaker fully operating Intel’s US semiconductor factories, said the person, who asked not to be identified because the conversations are private.

That would also address concerns about Intel’s deteriorating financial state, which has forced the company to slash jobs and curb its global expansion plans.

The arrangement may involve having major American chip designers take equity stakes, according to the person, along with support from the US government. That means the venture would not solely be owned by a foreign company. TSMC is the go-to chip supplier for Apple, Nvidia and other companies developing semiconductors that power artificial intelligence (AI) algorithms.

Source: SCMP