Intel and TSMC are reportedly in discussions to establish a joint venture aimed at managing some of Intel's chipmaking facilities. The planned entity would see TSMC acquiring a 20% stake, while the majority of shares would remain with Intel and possibly other U.S. semiconductor firms. This collaborative effort represents a strategic shift in the semiconductor manufacturing landscape, potentially strengthening Intel's production capabilities.

The news of the talks with TSMC has had an immediate effect on Wall Street, with Intel's stock prices experiencing a notable boost. Shares soared over 7% in premarket trading, spurred by the prospect of potential partnerships not only with TSMC but also with other industry giants like Nvidia and AMD, as reported by Insider Monkey. These gains highlight investor optimism about the proposed venture's impact on Intel's business.

As part of the joint venture, TSMC plans to contribute its renowned chipmaking techniques rather than making a direct capital investment. This could involve sharing its advanced manufacturing processes and training Intel's personnel in return for its stake in the collaboration. However, the initiative has prompted mixed reactions, with some Intel executives concerned about possible layoffs and implications for the company's proprietary technologies. Meanwhile, TSMC is considering involving other U.S. chip companies such as Nvidia and Qualcomm, although its share in the venture will not exceed 50%.