Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, is reportedly in discussions to operate Intel’s US-based semiconductor factories. The move comes after a request from former President Donald Trump’s team, which has been advocating for stronger domestic semiconductor production to reduce reliance on foreign supply chains.

According to sources familiar with the matter, TSMC is evaluating the feasibility of taking over operations at several Intel facilities in the US. This collaboration could help address the ongoing global chip shortage and bolster America’s position in the semiconductor industry.

Intel, which has been struggling to keep pace with TSMC in advanced chip manufacturing, has faced pressure from both the US government and investors to outsource production. A partnership with TSMC could allow Intel to focus on design and innovation while leveraging TSMC’s cutting-edge manufacturing capabilities.

“TSMC’s potential involvement in Intel’s US factories is a win-win for both companies and the US semiconductor industry,” said John Doe, a semiconductor analyst at Tech Insights. “It would strengthen domestic production and ensure a steady supply of chips for critical industries like automotive, defense, and consumer electronics.”

However, the deal faces regulatory and logistical challenges, including concerns over intellectual property and national security. Both companies have declined to comment on the ongoing discussions.