The scoop, first unearthed by The Information and passed along via Reuters, suggests the US government, particularly the White House and the Department of Commerce, had a hand in nudging Intel into bed with its biggest competitor to salvage its failing IDM 2.0 strategy.

Despite promises of chip supremacy, Intel has floundered on both the product and manufacturing front.

No word has yet been received from either company and given that they’re both in financial quiet periods, it is unlikely to be forthcoming soon.

The plan appears to be an awkward compromise: TSMC gains a foothold in Intel’s US fabs, which cost tens of billions and are primarily designed to produce Intel processors — including those using Intel 3, Intel 4, and limited capacity for the elusive 18A process. Meanwhile, the deal falls short of a complete fab sale, which would have triggered alarm bells in Washington.

What remains unclear is who controls the other 80 per cent of this would-be venture. Earlier in the year, TSMC was courting AMD, Broadcom, Nvidia, and Qualcomm as possible investors. That didn’t go down too well — Nvidia denied it, and a TSMC board member dismissed it.

The elephant in the room is how these fit with TSMC’s existing plans. The Taiwanese chip giant is already investing $165 million in its Arizona Fab 21 to produce gear for its regular customers — including Job’s Mob.

Chipzilla’s investors loved the idea anyway. Intel stock jumped nearly seven per cent after the report, clawing back some of the ground lost after fresh US import tariffs battered its market capitalisation. TSMC’s US shares, on the other hand, dipped six per cent — suggesting Wall Street’s cocaine nose jobs are still wary of this awkward marriage.