As per the NASDAQ reports, Intel stock is seeing a big clearance in Wednesday's trading as a consequence of chip foundry news. The semiconductor company's share price dropped down by 7.1 Percent as of 3 PM ET.

The Intel officials denied reports that TSMC is considering taking over Intel's chip foundry business as it is losing ground following recent comments from Nvidia CEO Jensen Huang, a member of Taiwan Semiconductor Manufacturing's board of directors.

Intel, one of the world's only major chip designers and manufacturers of its chips is making a push to grow its chip manufacturing unit as a foundry services provider for third parties. But the challenge is that Intel's foundry unit has been amassing huge losses and is unstable when it comes to achieving tech milestones and winning major excellent contracts.

Intel's foundry struggles have led to speculation that TSMC and other chip manufacturers could step in and buy out some or the entire unit resulting in the plummet of Intel stock. But as per the new reports, Paul Liu, a member of TSMC's board and also the head of Taiwan's National Development Council, recently said that buying Intel's foundry unit has not been considered.

 

Intel recently named Lip-Bu Tan as its new CEO to replace Pat Gelsinger.

 

Also Read: Williams, Atlassian Announce Title Partnership to Form Atlassian Williams Racing

The biggest challenge for the CEO to face is dealing with Intel’s loss-making chip manufacturing, or foundry, operation. The investors are puzzled about the approach the new leader will take with the foundry business. The company has to make a tough decision as it will have a dramatic impact on the structural makeup of the company. There are some good reasons to think that selling the foundry or bringing in partners to operate it as a joint venture would be the right decision for Intel. But it's tough to gauge about the real interest of TSMC and other tech players.