Intel and TSMC have reportedly reached a tentative agreement to form a joint venture that will operate Intel’s chipmaking facilities, according to The Information. Under the agreement, TSMC would take a 20% stake in the new venture.

Instead of contributing capital, TSMC is expected to share some of its chipmaking practices and provide training for Intel employees. This collaboration would mark a notable partnership between two of the world’s largest semiconductor companies.

The Information also reported that the discussions were initially sparked by the Trump administration, which sought to support Intel’s turnaround efforts. Internally, Intel executives are reportedly concerned about the risk of mass layoffs.

The development comes shortly after the appointment of Lip-Bu Tan as Intel’s new CEO. His leadership is expected to bring significant changes to the company’s direction, according to earlier reports.

TSMC declined to comment on the matter. TechCrunch also reached out to Intel but has not received a response.

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