TSMC Faces Tough Choices Amid Rumors for Intel Collaboration
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
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