Reports that Intel has approached its biggest rival, TSMC, to invest or partner with are significant developments that symbolize the company’s restructuring strategy and changes in the industry structure.
🟦 Intel asks for investment from its biggest competitor, TSMC?
According to reports, Intel is said to be in talks to explore the possibility of investing or partnering with TSMC. Although it has not been officially confirmed, if it is true, it will be an attempt to further deepen the complex relationship of “both competitors and customers”. Negotiations are in the early stages and there are no guarantees of reaching an agreement.
- Key content: Intel approaches TSMC for investment and partnership (early stage, agreement pended)
- Technical Features and Benefits: Potential to leverage TSMC’s manufacturing capabilities while reinforcing the credibility of Intel’s foundry business
- Target markets and applications: Fields that require cutting-edge manufacturing nodes, such as advanced CPUs, GPUs, and semiconductors for AI.
🟦 Intel rushes to rebuild and rising geopolitical risks
Intel has become increasingly dependent on TSMC due to lags in manufacturing technology, but at the same time, it has the challenge of getting its own “Intel Foundry Services (IFS)” off the ground. On the other hand, TSMC has an overwhelming market share of over 90% and is in a position to be watched closely by antitrust authorities in various countries.
If the two companies seek cooperation in this context, Intel can increase credibility and TSMC can show a “healthy competitive environment”. In addition, due to the deepening confrontation between the United States and China, there is an urgent need to diversify supply chains and strengthen manufacturing capabilities in the United States. Competitor Samsung is also trying to catch up with advanced processes, and the entire semiconductor industry is entering a phase of seeking “both cooperation and competition”.
🟦 Summary
Reports that Intel is approaching TSMC to invest in it indicate that the semiconductor industry is moving from mere competition to an era of “co-operation”. While it is unclear whether this will happen, there are reasonable benefits for both companies, such as mitigating regulatory risk and ensuring reliability.
The pride that semiconductors are a technology that originated in the United States is certainly deep-rooted, but the global competitive environment cannot be overcome by itself. Because a company as well-known and influential as Intel is, a flexible strategy to approach rivals can also serve as a reality solution.
