TSMC Faces Tough Choices Amid Rumors for Intel Collaboration

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Rumors about TSMC considering bailing out Intel Foundry Service while Broadcom takes over the design department sound weird. Can that pass the anti-trust reviews? And since the Department of Commerce demands Intel to have a majority stake over Intel Foundry to qualify for Chips Act funding, it would be meaningless for TSMC to get involved as a minority investor.

Further reports from Baird analyst Tristan Gerra citing supply chain chatters that the U.S. government may push for TSMC to send engineers to Intel's 3nm/2nm fabs, contributing expertise to ensure that Intel’s manufacturing projects remain competitive. This news led to a 7.2% increase in Intel’s stock price after a 6% surge the day before, while TSMC’s shares fell by over 1%, with another 1.3% drop in the Taiwan Stock Exchange trading session. Senior analysts and semiconductor experts have cast doubts on the validity of the chatter.

Read our analysis here: https://techsoda.substack.com/p/tsmc-faces-tough-choices-amid-rumors