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Intel shares are up 5% late in the cash session following a report from The Information that sheds light on ongoing talks between Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) to form a joint venture to operate Intel's chipmaking facilities. Under the proposed deal, TSMC would take a 20% stake in the new company and offer manufacturing expertise and personnel training. 

Two people familiar with the talks between Intel and TSMC provided additional color about the preliminary agreement to form the new joint venture:

The JV was encouraged by members of the Trump administration and is part of the broader 'America First' effort to revive the U.S. chipmaking sector after decades of decay. It also plays into hemispheric defense, where the U.S. will rely less on foreign adversaries for chips.

President Trump has previously accused Taiwan of "stealing" America's chip industry: "You know, Taiwan, they stole our chip business … and they want protection." However, TSMC has reversed the tide with additional investments in the U.S. – more than $100 billion.

Multiple reports over the last several weeks, including this one from Reuters, have discussed TSMC pitching a JV with Nvidia, Advanced Micro Devices, and Broadcom to operate Intel's factories.

Sources via The Information continued:

In February, Robert W. Baird analysts wrote in a note to clients that the Trump administration was working to broker a JV between Intel and TSMC, one which would focus on something we said last August has excess value at the Intel enterprise, namely its fabs… 

In markets, Intel shares are up 5% in late cash trading. On the year, shares are up about 16% on speculation of a deal – shares have been floored around $20 handle. 

Will Intel shares fly in Trump's America First era?