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’s worth, and the U.S. chip giant could actually fare fine without it, Bernstein Research concluded.

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.