Taiwan Semiconductor Manufacturing Company (TSMC) has firmly denied reports suggesting that it is in discussions with Intel about a potential chipmaking joint venture. CEO C.C. Wei clarified during the company’s first-quarter earnings call that TSMC is not engaged in any talks regarding a joint venture, technology licensing, or other collaborations with Intel, dispelling recent rumors about a partnership.
The reports, which surfaced in early April, claimed that Intel and TSMC were in preliminary talks to form a joint venture, with TSMC reportedly set to acquire a 21% stake in the venture to operate Intel’s chip factories. These claims prompted speculation about a collaboration between the two semiconductor giants. However, TSMC’s CEO quickly refuted the discussions, providing clarity on the matter during the earnings call. Intel, when contacted for comment, did not respond, citing the company’s general stance of not commenting on rumors.
Intel, once a dominant force in the U.S. chip market, has struggled in recent years as it faces increased competition from companies like Nvidia, AMD, Qualcomm, and Apple. The company’s performance last year marked its worst-ever financial results as a public entity, with a staggering 61% drop in its stock value.
TSMC’s denial of any potential joint venture comes at a time of heightened global trade tensions, particularly with the U.S. government. President Donald Trump has been pushing for tariffs to address global trade imbalances and encourage the reshoring of manufacturing to the U.S. This has led to an investigation into semiconductor imports by the U.S. Department of Commerce, a move that could result in new tariffs on the chip industry, including those targeting Taiwan.
Despite these challenges, TSMC reported strong earnings for the first quarter, driven by ongoing demand for AI chips. However, the company faces potential headwinds, including the impact of tariffs imposed by the U.S. and stricter export controls affecting its clients, such as Nvidia and AMD. As TSMC navigates these geopolitical and market challenges, its ongoing success will likely depend on how it adapts to the evolving landscape of the global semiconductor industry.
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