Taiwan Semiconductors $24 Billion Bet to Take Back U.S. Chip Manufacturing from Intel

09 March, 2025 | 4 Min Read

tickers affected by this

ticker	polarity	why?
INTC	positively	The article highlights Intel’s recent struggles and delays, which have led to concerns about its ability to compete in the semiconductor market against TSMC. A potential alliance or acquisition by TSMC could provide Intel with the technological advancements and market leadership it needs to reverse its declining fortunes, thereby positively affecting the INTC stock.
NVDA	positively	TSMC’s expansion in the U.S. will positively affect NVIDIA (ticker: NVDA) by ensuring a more reliable and potentially more cost-effective supply of advanced semiconductor chips. This will enable NVIDIA to enhance its offerings in AI and data center solutions, driving innovation and growth and benefiting the company’s financial performance. TSMC’s investment indicates a strong alignment with NVIDIA’s goals, suggesting a robust supply chain for their key products.
AVGO	positively	The ticker AVGO, representing Broadcom Inc., will likely be positively affected by TSMC’s expansion as Broadcom is among the major tech companies that could benefit from TSMC’s advanced manufacturing capabilities and the increased investment in U.S. manufacturing. This is especially relevant within this context, as AVGO stands to benefit significantly in this move, and an increased supply capability on the semiconductor’s part for Broadcom’s infrastructure.
QCOM	positively	Qualcomm (QCOM) is likely to benefit positively from TSMC’s expanded U.S. manufacturing capabilities, as the company is a major customer of TSMC’s advanced semiconductor technologies. This expansion will ensure a more reliable and potentially cost-effective supply of high-performance chips, which are crucial for Qualcomm’s products, including 5G infrastructure and AI-driven solutions. Additionally, TSMC’s increased presence in the U.S. could lead to more innovation and faster time-to-market for Qualcomm’s cutting-edge technologies, further enhancing its competitive edge in the market.

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summary

Taiwan Semiconductor Doubles Down on U.S. Manufacturing Amid Intelligence Expansion

July 7, 2025 - In a move that could reshape the semiconductor landscape, Taiwan Semiconductor Manufacturing Company (TSMC) has announced a significant expansion of its U.S. manufacturing capabilities. The company is investing $100 billion to build three additional fabrication plants, two packaging factories, and a research and development (R&D) center. This investment follows an existing $65 billion project in Arizona, which is already underway. This strategic move by TSMC comes at a time when the U.S. government is heavily investing in domestic semiconductor manufacturing. The CHIPS and Science Act, signed into law in 2022, aims to invest $280 billion into research and development and semiconductor manufacturing within the United States. Despite this support, Intel, one of the major beneficiaries of the CHIPS Act, has struggled to make significant progress.

Intel’s Stumbling Blocks

Intel’s foundry business has been on a decline, with revenues dropping by 7% year over year in 2024. The company recently announced delays in the opening of a new plant in Ohio, pushing the operational date to 2030. This setback comes as Intel’s rivals, particularly TSMC, continue to strengthen their market positions. TSMC’s new investment is poised to further solidify its dominance in the foundry market, which it already controls with nearly 60% market share. The company’s strategic move aims to bolster its operational relationships with leading tech giants such as Nvidia, AMD, Broadcom, and Qualcomm. These companies are among the major contributors to the growing demand for AI infrastructure, particularly in data centers and chipware.

AI Infrastructure Investment Continue To Grow

Over the past few weeks, several tech giants within the Magnificent Seven group have announced plans to invest heavily in AI infrastructure. TSMC’s investment in the U.S. is a direct response to these developments, allowing the company to capitalize on the rising capital expenditures from AI’s biggest contributors and likely has Intel’s struggles in mind. TSMC’s latest move could be seen as a strategic checkmate against Intel, especially given the latter’s struggles with delays and declining market share. Despite receiving substantial government support, Intel has shown little progress, raising concerns about its ability to compete in the rapidly evolving semiconductor market.

Potential Path Forward for Intel

Given the current landscape, some analysts suggest that a productive alliance with TSMC or even a potential acquisition could be the best outcome for Intel. Such a partnership could help Intel leverage TSMC’s technological advancements and market leadership, potentially reversing its declining fortunes. Until such developments materialize, TSMC’s aggressive investments continue to position it as a formidable leader in the semiconductor industry. The semiconductor market is experiencing a generational shift, driven by advancements in AI and increasing demand for high-performance chips. TSMC’s latest investment underscores its commitment to staying at the forefront of this technological revolution, potentially leaving Intel and other rivals playing catch-up.

Conclusion

TSMC’s $100 billion investment in U.S. manufacturing is a bold move that could further cement its leadership in the semiconductor industry. As Intel continues to face challenges, TSMC’s strategic investments position it well to capitalize on the growing demand for AI infrastructure. The semiconductor landscape is rapidly evolving, and TSMC’s latest move signals a new chapter in this competitive market.