tsmc's stock falters amidst intel foundry venture uncertainties
taipei, Friday, 14 March 2025.
tsmc’s stock experienced a dip. Market analysts are concerned that Intel’s foundry joint venture may hinder Intel’s complete exit from the foundry business. This could negatively impact tsmc’s market share. The proposed joint venture aims to manage Intel’s foundry operations. Trump’s administration supports the plan and has requested tsmc’s involvement. Intel’s foundry division faced a $18.8 billion loss in 2024. The new CEO, Lip-Bu Tan, may consider merging Intel Foundry with GlobalFoundries to rival tsmc.
stock decline and market concerns
On Thursday, tsmc’s stock fell over 3% [1]. This decline occurred amidst a nearly 15% surge in Intel’s stock [1]. The market speculates that the joint venture could prevent Intel from fully exiting the foundry business [1]. This situation raises concerns about potential harm to tsmc’s interests and market share [1]. The collaboration involves tsmc potentially partnering with Nvidia, AMD, and Broadcom to manage Intel’s factories [2][4]. tsmc would hold no more than 50% ownership in this venture [2][4].
expert opinions on intel’s new ceo
Intel’s appointment of Lip-Bu Tan as CEO has sparked optimism among Wall Street analysts [1]. Bank of America views Tan as having a solid record of success [1]. They also noted Cadence’s prior collaborations with Intel [1]. They believe Tan’s leadership could lead to Intel’s restructuring and turnaround [1]. Deutsche Bank analysts share a similar sentiment [1]. They consider Tan’s appointment an ideal outcome for Intel [1]. They emphasized his extensive expertise within the semiconductor ecosystem [1].
potential joint venture structures and implications
The proposed joint venture between tsmc and Intel could take two forms [1]. Intel might completely exit the manufacturing business [1]. Alternatively, Intel, tsmc, and other companies could form a joint foundry [1]. A complete exit by Intel would benefit Intel with projected profits of $6 to $8 billion from 2026-2027 [1]. It would also benefit tsmc long term [1]. A joint venture with Intel presents conflicts of interest [1]. If tsmc fully supports the joint venture, it risks creating a strong competitor [1].
samsung’s perspective and market share dynamics
Samsung’s foundry business faces serious risks if tsmc forms a joint venture with major US chip designers to operate Intel’s facilities [2]. Industry experts suggest a decline in Samsung’s market share is likely [2]. In the fourth quarter of 2024, tsmc’s market share rose to 67.1%, a 2.4 or 2.4 percentage point increase from the previous quarter [2]. During the same period, Samsung’s share decreased from 9.1% to 8.1% [2]. Samsung’s foundry division reported an operating loss exceeding 2 trillion won ($1.4 billion) in Q4 2024 [2].
us government involvement and geopolitical considerations
The Trump administration is reportedly involved in these discussions [3][4]. They requested tsmc’s assistance to address Intel’s operational challenges [4]. The US government seeks to ensure Intel remains largely US-owned [4]. M.S. Lin, a former tsmc executive, suggests merging Intel Foundry Services with GlobalFoundries [3]. He argues this would create a US-based chipmaking powerhouse to rival tsmc [3]. Lin believes this strategy is critical for both industry competition and national security [3].