Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE: TSM) has denied reports suggesting it is considering a joint venture with Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Broadcom (NASDAQ: AVGO) to take over Intel’s (NASDAQ: INTC) struggling foundry division. The rumored deal, which originated in Taiwanese media, sparked speculation about a potential collaboration between tech giants to challenge Intel’s dominance in the foundry space.
TSMC Board Member Dismisses Intel Takeover Talks
On March 19, Paul Liu, a TSMC board member, addressed the rumors, firmly denying any board-level discussions about acquiring Intel’s foundry business.
Liu compared the potential deal to “mixing diesel and gasoline”, suggesting the two companies’ technologies and business models are fundamentally incompatible. He added that TSMC remains committed to keeping its most advanced manufacturing processes in Taiwan before expanding operations in the United States, emphasizing the company’s Taiwan-first strategy.
Why the Rumor Sparked Speculation
The initial reports suggested that Nvidia, AMD, and Broadcom were considering a partnership with TSMC to co-manage Intel’s fabs, a move that could reshape the global semiconductor landscape. However, Liu’s comments indicate that TSMC has no interest in taking over Intel’s foundry operations.
Intel Faces Challenges as Rivals Dominate
Intel, once the dominant force in semiconductor manufacturing, has struggled with delays in advanced process nodes and increased competition from TSMC and Samsung. As the company tries to regain its competitive edge, rumors of a joint venture with rival chipmakers fueled speculation about a potential industry shake-up.
TSMC Prioritizes Taiwan Operations Over US Expansion
Liu reiterated TSMC’s stance on prioritizing its Taiwan operations, highlighting that the company’s leading-edge chip technology will remain in Taiwan for the foreseeable future, despite TSMC’s expansion plans in Arizona. This underscores TSMC’s commitment to protecting its technological lead by keeping cutting-edge manufacturing close to home.
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