tsmc doubles down: ai foundry expansion and intel partnership revealed

2025-04-14 tsmc

Taipei, Monday, 14 April 2025.
tsmc is increasing its dominance in ai chip manufacturing. They are expanding their ai foundry capabilities. They also announced a collaboration with intel. This strategic move enhances tsmc’s position among top ai stocks. It leverages the growing optimism surrounding the us economy. It also takes advantage of the soaring demand for ai solutions. The collaboration aims to address the increasing need for advanced ai hardware.

Manufacturing capacity expansion

TSMC is actively expanding its manufacturing footprint in the United States [2]. The company’s Arizona plant is accelerating its construction. The second phase is set for trial production by the end of 2026 [2]. The third phase is scheduled to begin construction in mid-2025, targeting trial production in 2027 [2]. This expansion includes advanced packaging technologies like CoWoS, which is expected to stimulate operational vitality for equipment manufacturers [2]. This move ensures TSMC can meet the escalating demands for advanced AI chips and mitigate potential trade risks [2].

Intel partnership and market dynamics

TSMC’s collaboration with Intel is pivotal, especially given the challenges Intel faces in securing clients for its advanced packaging solutions [7]. While Intel has the capacity, it has not actively marketed its Foveros technology [7]. TSMC’s ability to seamlessly integrate both chip manufacturing and packaging gives them a competitive edge [7]. Moreover, TSMC’s existing customers, like Nvidia and Broadcom, are testing Intel’s manufacturing capabilities, suggesting a possible diversification of their supply chains [7]. This partnership could reshape the competitive landscape, potentially benefiting TSMC’s market position.

Geopolitical considerations and trade impacts

Ongoing trade tensions and policy adjustments are influencing TSMC’s strategy [2]. While the US has exempted most electronic terminal products from tariffs, concerns remain about potential semiconductor tariffs [2]. These concerns drive TSMC to expedite its US expansion [2]. The company is also adopting strategies to handle tariffs, such as FOB (Free on Board) shipping, where customers bear the tariff costs [2]. These measures aim to minimize disruptions and maintain a stable supply chain amid geopolitical uncertainties [2].

SoftBank’s failed negotiations with Intel

SoftBank’s negotiations with Intel for AI chip development fell through due to Intel’s inability to meet SoftBank’s production quantity and speed requirements [3]. Subsequently, SoftBank turned to TSMC, but a deal has not been reached because TSMC is struggling to meet the needs of its current clients [3]. Masayoshi Son, SoftBank’s CEO, remains committed to investing billions in AI chip production, highlighting the critical importance of manufacturing capacity in the AI sector [3]. This situation underscores the high demand and limited supply in advanced AI chip manufacturing [3].

Advanced technology and future prospects

TSMC is set to utilize advanced technologies such as the N2X process for AMD’s next-generation Zen6 desktop CPUs, potentially reaching frequencies exceeding 6 GHz [6]. The company is also expected to begin mass production of its 2nm process in the second half of 2025, with initial yields around 60% [6]. These technological advancements solidify TSMC’s leadership and attract major clients like Apple, which is anticipated to use TSMC’s 2nm process for its A20 chips in the iPhone 18 series [6]. Such innovations are crucial for sustaining TSMC’s competitive edge [6].

Bronnen

ai foundry intel partnership