A rumored joint venture between Intel Corp. and its biggest rival, Taiwan Semiconductor Manufacturing Co. TSM, could pose more potential problems than it’s worth, and the U.S. chip giant could actually fare fine without it, Bernstein Research concluded.

Taiwan Semiconductor Manufacturing Co. is considering taking a controlling stake in Intel Corp.’s factories at the request of Trump administration officials, a person familiar with the matter said, as the president looks to boost American manufacturing and maintain US leadership in critical technologies.

Key Takeaways Intel shares jumped Thursday, extending their recent rally on speculation of a deal with TSMC.Intel could collaborate with TSMC to potentially spin off its foundry business into a new U.

TSMC, which makes around 90% of the world’s most advanced semiconductors, would take over Intel’s manufacturing business and hold a majority share, alongside a group of investors that could include private equity firms and other tech companies.