The Trump administration reportedly initiated the talks between the two semiconductor giants in an effort to revitalize Intel, which has struggled with manufacturing setbacks in recent years.

TSMC was set to take a 20 percent stake in the new company, The Information said.

US President Donald Trump has previously accused Taiwan of "stealing" the US chip industry and has been pushing to bring advanced manufacturing back to American soil.

The plan coincides with TSMC's recent announcement that it will invest at least $100 billion in the United States to build cutting-edge manufacturing facilities.

The Information reported that despite the preliminary agreement, the proposed joint venture faces resistance from some Intel executives concerned that the deal could disrupt the development of Intel's own chipmaking technology and lead to widespread layoffs.

Questions also remain about how the two companies would integrate their operations, given that they use different production equipment models and materials.

Intel did not immediately respond to a request for comment. TSMC declined to comment.

TSMC has long faced demands to move more of its production away from Taiwan, amid fears that supplies of the critical technology could be disrupted in any conflict with Beijing.

The company pledged during former president Joe Biden's administration to invest more than $65 billion in three factories in Arizona, one of which began production in late 2024.

Semiconductors have for now been spared from Trump's barrage of trade tariffs announced from the White House on Wednesday, but the US leader frequently pressures TSMC and other chip manufacturers over their lack of US production.

arp/md

TSMC - TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY