Did Taiwan Semiconductor Just Say “Checkmate” to Intel?

During the office of President Biden, his administration aimed to promote investments in domestic production during office in the Oval office. One of the administration’s achievements came to 2022.

Over the past few years Staff emerged as the largest Beneficiaries of chipsGiven the growing investment of artificial intelligence (AI), particularly in data centers and Chipware.

However, a recent statement Taiwanese semiconductor production (NYSE: TSM) Makes me review my cautious optimism around Intel.

Let’s study the last slip of Intel and appreciate why the semi-announcement of Taiwan can be the final chess against its American foundry rival.

Last year, Intel brought a total of $ 53.1 billion. Although this year was only a 2% decline, the results of the company’s well-founded business were more alarming.

In 2024, Intel Foundry was selling $ 17.5 billion, with 7% annually. Casting business directly competes to the semester of Taiwan, which belongs to almost 60% of Global Global Foolny Market. Given that Intel Foundry faster compared to the company’s overall business, I’m not so sure that Intel proves that it can reach its old competitors.

In order to add the upper salt, Intel simply announced that now he is postponing the opening of Ohio’s new factory until 2030. Now the plant must work between this year and 2026.

On March 4, Taiwan Sam announced that $ 100 billion is in harmony with the United States to build three other production plants, two packaging factories, and a. Survey and development (R & D) center. This investment comes with the heels of $ 65 billion in Arizona, where TSMC is building additional production opportunities.

TSMC Investments in the United States are designed to help the company strengthen operational relationships with large customers including NvidiaTo be in style DashTo be in style Broadbandand QualificationA number

In the last few weeks, several groups of giants published their respective programs to introduce ai infrastructure in the next few years. On the surface you can think that Intel can benefit from the largest investors of AI capital expenditures (Capex). Instead, TSMC noticed the fight in Intel, and I see that the company’s new $ 100 billion in the United States, as a step, can postpone its already dominant pulse.