Taiwan Semiconductor Manufacturing (TSM) looked to be in the crosshairs of the White House after U.S. President Donald Trump floated at least

Intel, a fallen Silicon Valley icon trying to restore its reputation as America’s most prominent semiconductor company, is working with the Trump administration on a plan to turn over the operation of its chip-making plants to a giant Taiwanese rival.

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.

A rumored joint venture between Intel Corp. and its biggest rival, Taiwan Semiconductor Manufacturing Co. TSM, could pose more potential problems than it may be worth, while the U.S. chip giant could actually be fine without it,

The Trump administration is reportedly casting about for unorthodox strategies to preserve advanced manufacturing in the U.S.

The Trump administration has reportedly urged TSMC to partner with Intel and expedite its investments in the US. Sources suggest that TSMC is weighing a controlling stake in Intel's factories, a move experts warn could be more harmful than beneficial.

Taiwan Semiconductor Manufacturing (NYSE:TSM) is considering acquiring a controlling interest in Intels (NASDAQ:INTC) U.S. factories following a request from the Trump administration, according to a Bloomberg report.

Trump officials raised the idea of a deal between the two companies in recent meetings with the Taiwanese chipmaker.

Trump's team raised the idea of a deal between the two companies in recent meetings with officials from TSMC, and the Taiwanese company was receptive, Bloomberg reported, citing a person familiar with the matter.

TSMC's first board of directors meeting in the US on February 12 did not reveal any new fab expansions or high-level personnel adjustments, as previously speculated. Nevertheless, the market is closely monitoring the ongoing confidential conversations between the US government and TSMC.

Broadcom and TSMC are reportedly considering separate deals that could lead to Intel's breakup, while the Trump administration weighs in on the potential foreign control of its chip manufacturing operations.