Well, there is a lot of uncertainty around whether TSMC is looking for an investment in Intel, but according to an analyst, investing in the US chip industry is a ‘way better’ choice.
TSMC Should Ramp Up US Investments, Rather Than Looking For Investment Into Intel, Which Isn’t Going to Happen Either Way
For those unaware, rumors had circulated about TSMC potentially investing directly in Intel to contribute to the ‘American chipmaking’ cause. However, the Taiwan giant later denied the reports, claiming that it was not looking for a partnership or investment at all. However, the rumors do indicate that there’s uncertainty around whether a TSMC-Intel partnership could pan out at all, but, according to the prominent analyst Ming-Chi Kuo, TSMC should focus on ramping up US investments rather than collaborating with Intel, calling this a ‘superior’ move.
There are several reasons why a TSMC-Intel partnership may not be fruitful, and if it were to occur, it would likely have political motivations behind it. But, interestingly, according to the analyst Dan Nystedt, TSMC’s founder, Morris Chang, did talk about Intel getting into the foundry business in the 2nd volume of his memoir, wishing Team Blue good luck, but at the same time, saying that “it doesn’t come at the expense of TSMC.” The statement refers to the inclusion of customer shift risk, pricing pressure, and, of course, the policy tilt towards Intel being a native US foundry.
TSMC and Intel are two very different companies with unique management, workforce, and technology roadmap planning, meaning that fundamentals cannot be merged. And, given the Taiwan giant’s ambitions in the US, partnering up with Intel means that the company has a pretty difficult task on its hands. By ramping up investment in America, TSMC could gain numerous benefits, including production diversification, increased customer confidence, and a competitive edge over underscoring competitors like Intel and Samsung, who are battling in the same region.