Intel Explores AI Chip Partnership with TSMC, Stock Surges 4.4%

Intel Corp. shares jumped nearly 5% Friday following reports of potential manufacturing collaborations with Taiwan Semiconductor Manufacturing Co. The chipmaker, which has struggled to compete with Nvidia and AMD in artificial intelligence processors, could gain critical foundry capabilities through the TSMC alliance.

Once the undisputed leader in semiconductor innovation, Intel has watched rivals capture the AI acceleration market. Billions invested in its foundry business have yet to yield significant external customers. The TSMC discussions mark a potential inflection point for Intel's recovery strategy.

Recent investments from Nvidia and SoftBank provided temporary optimism, but analysts note Intel still requires operational execution beyond capital injections. The market appears cautiously optimistic about Intel's ability to leverage TSMC's advanced manufacturing to reclaim relevance in AI chips.