Intel and TSMC have reached a preliminary agreement to create a joint venture to manufacture chips at Intel's factories, The Information reports.
TSMC will reportedly own 20% of the new venture, but the company will finance its stake not with money, but with chip manufacturing technologies.
This comes less than a month after Lip-Bu Tan, an investor and entrepreneur, became Intel's new CEO, and reports emerged that Tan was seeking to make radical changes to the company.
In 2024, Intel reported a net loss of $18.8 billion, its first since 1986. The company's stock lost 60% of its value in 2024.
In 2025, the company recovered some of these losses and its shares rose by almost 12%.
Last month, TSMC said it plans to make a new investment of $100 billion in the United States, which includes the construction of five additional chip manufacturing plants.