Taiwan Semiconductor Manufacturing Co. (TSMC) and Broadcom—are each weighing the possibility of buying part of Intel, another competitor in the space. Both Intel and the Trump administration are apparently interested in making a deal.

TSMC could address Mr. Trump’s demands by simply building more manufacturing capacity in the United States, said Stacy Rasgon, a semiconductor analyst at Bernstein Research. TSMC, which received up to $6.6 billion in grants from the CHIPS Act, is building three factories in Arizona and has the ability to expand there.

TSMC, the world's largest chipmaker, is contemplating a major stake in Intel's U.S. factories at the behest of U.S. leadership. This potential alliance aims to revitalize Intel's manufacturing prowess while aligning with U.