Did Taiwan Semiconductor Just Say “Checkmate” to Intel?

During President Biden's work in the Oval Office, his administration made a point to enhance investment in local manufacturing. One of the administration's achievements came in 2022, when Biden signed the Law of Chips and Sciences – a law that seeks to invest $ 280 billion in research, development and the semiconductor industry here in the United States

During the past two years, Intel He appeared as one of the largest The beneficiaries of the financing of the chips law. Due to the high investment in artificial intelligence infrastructure (AI)-especially in databases and chips programs-I previously expected that Intel would be a great winner under the new Trump administration-which, such as his predecessor, focuses on promoting local manufacturing investments.

However, a recent announcement from Taiwan manufacturing semiconductors (Nyse: tsm) It makes me reconsiderate my caution about Intel.

Let's explore the latest stumbling from Intel and evaluate the reason that the latest Taiwan Simae's announcement could be the final examination move against its opponent of the American cave.

Last year, Intel achieved $ 53.1 billion of total revenues. While this only represents a 2 % decrease on an annual basis, the results of the company's museum work were more concerned.

In 2024, Intel Foundry produced $ 17.5 billion of sales – a decrease of 7 % on an annual basis. Foundry is competing directly with Taiwan Sim, which has approximately 60 % of the global Mabek market. Given that the Intel Museum remains faster compared to the company's total business, I am not sure that Intel proves that he can catch up with its registered competitors.

To add salt to the wound, Intel has just announced that it is now delaying the opening of a new factory in Ohio until 2030. To return to it, the factory was supposed to work between this year and 2026. Now, it is stopped until the next decade.

On March 4, Taiwan Half announced that it invests $ 100 billion in the United States to build three additional manufacturing factories, two packaging factories, and Research and development (R&D) Center. This investment comes in the wake of a current project worth $ 65 billion in Arizona, where TSMC builds additional manufacturing capabilities.

TSMC investments in the United States aim to help the company to enhance operational relations with major customers, including Nafidiaand AMDand BroadcomAnd Qualcomm.

Over the past few weeks, many technology giants in the Seven Magnificent Spinted Group have designed their plans to invest in Amnesty International's infrastructure over the next few years. On the surface, you may think that Intel can benefit from the high capital expenditures (CAPEX) of the largest artificial intelligence shareholders. Instead, TSMC has noticed Intel conflicts, and I see the company's new investment of $ 100 billion in the United States as a step that could enhance its already dominant pulse in the Mabek market.