Intel-TSMC Joint Venture Rumors Spark Industry Reactions
Recent rumors about a possible semiconductor manufacturing partnership between Intel and TSMC have triggered strong reactions from industry experts, analysts, and politicians. Naturally, Intel employees also weighed in on the matter.
Joseph Bonetti, a Principal Engineering Program Manager at Intel, shared his opinion on LinkedIn, arguing that such a partnership would be a mistake. He believes Intel is making significant progress in reclaiming its lead in semiconductor manufacturing and should not give control of its foundry business to TSMC. Bonetti’s post has since been deleted.
“Intel Leaders, Intel Board, Trump Administration, please do not sell out and/or give control of Intel Foundry to TSMC, just as Intel is taking a technical lead and getting out of first gear. This would be a horrible, demoralizing mistake,” he wrote.
Intel has faced criticism for lagging behind competitors like TSMC in semiconductor technology, but Bonetti insists the company is making a strong comeback. He pointed to Intel’s latest fabrication process, Intel 3, which is already being used for Xeon 6 data center processors. He also highlighted Intel’s next-generation Intel 18A process, expected to be completed soon and used for Panther Lake processors in client PCs later this year.
In contrast, TSMC’s equivalent 2nm-class N2 technology is only expected to enter mass production in late 2025. This suggests that Intel is progressing faster than some reports indicate, strengthening its position in advanced semiconductor manufacturing.
The idea of Intel and TSMC forming a joint venture raises several questions. If Intel were to rely more on TSMC, it could be perceived as an admission that its own foundry efforts are struggling. On the other hand, such a partnership might offer strategic advantages, including increased production capacity for Intel’s chips while its own foundry business scales up.
Beyond business considerations, geopolitical factors also play a key role. The U.S. government has been pushing for semiconductor independence to reduce reliance on overseas manufacturing, particularly from Taiwan. If Intel partners with TSMC, it could raise concerns about national security and economic stability.
The semiconductor industry is watching closely to see how Intel navigates this situation. Will Intel continue its independent efforts to regain its manufacturing leadership, or will a collaboration with TSMC be seen as a necessary move to stay competitive? The coming months will be crucial in determining the future of Intel’s foundry strategy.
