TSMC CEO says Intel can’t compete in chipmaking just by “throwing money”

TSMC holds the largest market share in the foundry segment and has consolidated its position recently by capitalizing on the Artificial Intelligence boom. However, given the capacity constraints the Taiwanese chip giant faces, this has opened up a new opportunity for competitors like Samsung and Intel Foundry.

Competitors are keeping an eye on customers who can no longer place orders with TSMC. And the blue team has been successful in terms of competition given its recent success and optimism regarding the 18A and 14A processes.

In this context, during an earnings call, TSMC President CC Wei was asked whether TSMC feels a “threat” from companies like Intel. The biggest concern would be with American customers. Wei responded that his company is “confident” in its current position.

Then he added that competitors cannot simply outperform TSMC by “investing capital” in advanced chip manufacturing processes.

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Full argument

The TSMC president argued that the execution of advanced chip technology focuses on preparing production lines and certifying partner designs. Only after this is it possible to focus on establishing sufficient capacity for external customers, which implies that capital is not the only factor.

In the words of the executive, “In the development of semiconductor technology to date, receiving investments has not contributed to improving competitiveness, right?” And he added that he hopes the same people who invested in Intel can invest in TSMC.

Intel’s position

Intel Foundry has been advancing its chip offerings recently. The success of Panther Lake, based on internally developed 18A technology, is seen as an indicator that Intel is consolidating itself as a strong competitor in the semiconductor segment.

Most importantly, Intel’s 18A-P and 14A processes are known to have attracted interest from companies such as Apple, NVIDIA, AMD and Qualcomm. While this has yet to materialize into chip orders, it’s fair to say that Intel has reason to be confident in competing with TSMC.

TSMC’s CC Wei’s statements likely refer to the Trump administration’s decision to invest US$8.9 billion (R$48.04 billion) in Intel Foundry, in addition to commitments from NVIDIA and SoftBank.

Curiously, TSMC also decided to increase its investments in the US to boost the competitiveness of the semiconductor sector in the region. For example, TSMC’s Arizona factory is being prepared for 3nm production lines, a process in high demand.

Regardless of the outcome, it is important to observe how the rivalry between TSMC and Intel will evolve in the future. The AI ​​supply chain has become so vast that one semiconductor company is no longer enough to meet demand. And the increase in memory prices signals how much the number of suppliers matters.

Source: United Daily News, translated by Wccftech.