Intel is transforming its long-struggling chip manufacturing division into a standalone subsidiary open to outside investment — a structural overhaul aimed at reviving a business that disclosed a $7 billion operating loss, according to Reuters.
The timing is striking. According to reporting from Reuters, TSMC has pitched a joint venture to Nvidia, AMD, and Broadcom that would give those chip giants a shared ownership stake in Intel's foundry division. The proposal reflects a rare acknowledgment that Intel's fabs could serve the broader industry — not just Intel's own processors.
Meanwhile, demand signals are accumulating. Google has reportedly ordered more than 3 million in-house AI chips from Intel, according to multiple reports. Nvidia is actively testing Intel's manufacturing process, Reuters reported, with Broadcom doing the same. AMD is in early talks to manufacture chips at Intel Foundry, according to Tom's Hardware and CNBC. Microsoft was previously reported as a customer by Manufacturing Dive, and Intel also inked an AI chip deal with AWS, per TechCrunch.
Intel's CEO told CNBC that the foundry business is "gaining momentum as customer interest grows." Bank of America upgraded the stock, saying it now has more confidence in Intel's long-term earnings power, particularly in its foundry business.
The urgency for alternatives is partly TSMC-driven. According to Bing News, TSMC is so capacity-constrained that Google and Nvidia are actively courting Intel as a manufacturing backup. TSMC's CEO, however, pushed back on Intel's prospects, telling Wccftech the company can't compete by simply "throwing money" at chip production.
One significant constraint: Intel's $7.86 billion CHIPS Act award — finalized with the Biden administration — limits how much of the foundry it can sell off, requiring Intel to maintain a majority stake in any spinoff, per Tom's Hardware.
If Intel can lock in even a fraction of this customer interest, it would mark a genuine turning point for American chipmaking — and reduce the industry's dependence on a single Taiwanese manufacturer.