intel eyes tsmc partnership amid market volatility

2025-09-26 tsmc

Taipei, Friday, 26 September 2025.
intel is exploring potential collaboration with tsmc, including investment in manufacturing. the news comes as tsmc’s stock dipped to nt$1310, contributing to a taiwan market downturn. this follows reports of intel approaching apple for investment, signaling a broader strategy to secure external funding. nvidia recently invested $5 billion in intel. the collaboration talks occur during market uncertainty fueled by anticipated shifts in us interest rate policies.

Market reaction to collaboration talks

TSMC’s stock experienced a notable downturn following reports of potential collaboration with Intel [1]. In early trading in Taiwan, TSMC shares fell by NT$15, reaching NT$1305 [1][4]. This decline contributed to a broader downturn in the Taiwan stock market, which dropped over 550 points [1][4]. Simultaneously, the potential delay in interest rate cuts by the U.S. Federal Reserve impacted TSMC’s ADR, which decreased by 1.44% to $276.66 [1]. These market reactions underscore the sensitivity of TSMC’s stock to news regarding strategic partnerships and macroeconomic factors [1].

intel’s strategic investment pursuit

Intel’s engagement with TSMC aligns with its broader strategy to seek external investments and strengthen its manufacturing capabilities [2][7]. Intel CEO Lip-Bu Tan has been actively pursuing collaborations, meeting with Apple CEO Tim Cook and TSMC Chairman C.C. Wei earlier this year [2][4]. This initiative follows previous investments, including $2 billion from SoftBank in August and a recent $5 billion investment from Nvidia [2][4]. Intel’s stock saw a surge of 8.87%, closing at $33.99 on news of the TSMC discussions, reflecting positive investor sentiment towards these strategic moves [3][4].

potential impacts on manufacturing capacity

The discussions between Intel and TSMC involve potential co-investment in new fabrication facilities, which could significantly impact manufacturing capacity [4]. A joint venture was discussed in April, with TSMC potentially holding 20% of the new entity [4][5]. Nvidia’s CEO, Jensen Huang, noted that TSMC would provide wafer foundry services for the jointly developed chip between Nvidia and Intel [2]. These collaborations may reshape the competitive landscape, as Intel seeks to expand its manufacturing capabilities while TSMC aims to solidify its leadership in the foundry market [4].

geopolitical and market leadership implications

Amidst ongoing discussions, the potential collaboration carries significant geopolitical and market leadership implications [4]. An analyst at TechInsights suggested that the partnership could reshape the competitive landscape [4]. The U.S. government, with a 10% stake in Intel, is encouraging tech companies to strengthen cooperation with the company [3][7]. These partnerships are viewed as strategic moves to enhance technological advancements and secure supply chains, particularly as Intel aims to better compete with TSMC in the semiconductor industry [4][6][7].

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