According to a report on Thursday from The Information referencing two people familiar with the negotiations, Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) have tentatively agreed to a potential joint venture to operate Intel’s factories. 

TSMC, which is the largest manufacturer of semiconductors in the world, will most likely have a 20 percent ownership in the joint venture. The report also mentions that officials at the White House and U.S. The Commerce Department has been urging a deal between both firms to resolve Intel’s ongoing issues.

Intel and TSMC both declined to comment on the agreement, and the White House has not responded to an inquiry for comment from Reuters. Earlier this year, Reuters reported that TSMC was trying to obtain investment from Nvidia, Advanced Micro Devices (AMD), and Broadcom to take stakes in the joint venture to manage Intel's operations. The request was made after the U.S. government asked TSMC to help revitalize Intel, which has been trying to regain its position in the semiconductor industry.

In March, Intel named Lip-Bu Tan, a former board member and an industry veteran in the semiconductor sector, as its CEO to produce a turnaround following the company's failure to capitalize on the increase in demand for semiconductors driven by artificial intelligence. Intel has already invested more than $100 billion in expanding its chip-making capacity, but several former executives allege that it has faced a lot of difficulty trying to compete with TSMC's customer service and technical support. 

TSMC's performance, according to former executives, led to product delays and other test failures. In 2024, Intel also reported a net loss of $18.8 billion, the company's first reported loss since 1986, followed by several significant impairments. TSMC plans to invest another $100 billion in the U.S. including plans for five new chip manufacturing plants, and announced a press visit with U.S. President Donald Trump just last month.