Taiwan Semiconductor Manufacturing Co. (TSMC) has approached U.S. chip designers Nvidia, Advanced Micro Devices (AMD), Broadcom, and Qualcomm about acquiring stakes in a joint venture to operate Intel’s foundry division, according to four sources familiar with the matter. Under the proposal, TSMC would manage Intel’s foundry operations but would hold no more than a 50% stake in the venture.

The discussions, still in early stages, follow a request from the Trump administration for TSMC to help revitalize Intel, a struggling U.S. industrial giant. The sources, who spoke anonymously due to the confidential nature of the talks, emphasized that any final deal would require approval from the U.S. government, which opposes full foreign ownership of Intel or its foundry division.

Intel, TSMC, Nvidia, AMD, and Qualcomm declined to comment, while the White House and Broadcom did not respond to requests for comment.

Intel’s future is at a critical juncture, with its shares losing more than half their value over the past year. The company reported a 2024 net loss of $18.8 billion, its first since 1986, driven by significant impairments. Its foundry division’s property and equipment were valued at $108 billion as of December 31, according to a company filing.

The proposal comes as TSMC plans to invest $100 billion in the U.S., including building five new chip facilities, as announced on March 3. TSMC’s pitch to potential partners preceded this announcement, and discussions about the joint venture have continued, with TSMC aiming to involve multiple chip designers as stakeholders.

Intel has resisted selling its chip design unit separately from its foundry division, despite interest from several companies. Qualcomm, for instance, has withdrawn from earlier talks to acquire parts of Intel, according to sources.

Intel’s board has supported the joint venture idea and engaged in negotiations with TSMC, though some executives remain opposed. The company’s foundry division, a key part of former CEO Pat Gelsinger’s turnaround strategy, has faced challenges since his departure in December. Interim co-CEOs have since shelved Intel’s upcoming AI chip.

A partnership between TSMC and Intel would face significant hurdles, including differences in manufacturing processes, chemicals, and equipment. However, Intel’s past collaborations with Taiwan’s UMC and Israel’s Tower Semiconductor could provide a framework for cooperation, though safeguarding trade secrets remains a concern.

TSMC is also seeking investors in the joint venture who would become customers of Intel’s advanced manufacturing services. Recent reports indicate that Nvidia and Broadcom are testing Intel’s 18A manufacturing process, while AMD is evaluating its suitability. However, Intel’s 18A technology has been a point of contention in negotiations, with Intel claiming it surpasses TSMC’s 2-nanometer process.

Intel’s stock rose 6% in early trading on Wednesday, while Nvidia, AMD, Broadcom, and Qualcomm saw gains between 1.18% and 6.64%. TSMC’s shares closed 1.8% higher in Taiwan.