tsmc eyes $35 billion intel factory deal amid us expansion
Taipei, Sunday, 23 March 2025.
rumors are circulating that tsmc might acquire an intel factory for $35 billion. this potential move could significantly expand tsmc’s us presence. the deal surfaces amid concerns about foreign capital reduction in semiconductor testing investments. this possible acquisition raises questions about tsmc’s evolving strategy and its financial implications. analysts suggest that president trump’s prior statements about tsmc’s investment in the us hinted at this potential takeover. the market is closely watching how these developments will affect tsmc’s stock performance.
Market reaction and stock performance
The news of TSMC potentially acquiring Intel factories has already impacted stock prices [1]. TSMC’s ADR (American depositary receipt) experienced a 1.1% dip in early trading following the reports [1]. Simultaneously, other companies in the supply chain, such as ASE Technology Holding, also saw their stock values decline [1]. The market is reacting cautiously to the news, considering the potential risks and benefits associated with such a significant investment and strategic shift for TSMC [GPT].
manufacturing capacity and advanced technology
TSMC’s potential acquisition aligns with its strategy to expand manufacturing capacity and maintain its lead in advanced process technologies [1][2]. Intel’s 18A process is now achieving SRAM density comparable to TSMC’s N2 process, intensifying competition [2]. TSMC is also planning mass production of N2 chips by late 2025 [2]. This acquisition could allow TSMC to accelerate its production timelines and enhance its ability to meet the growing demand for advanced semiconductors, particularly in the U.S. market [GPT].
geopolitical considerations and us expansion
This move aligns with the broader trend of semiconductor companies increasing their presence in the United States [1][6]. TSMC has already committed to substantial investments in the U.S., including plans for multiple fabrication plants and advanced packaging facilities [6]. Acquiring existing Intel facilities could expedite TSMC’s expansion plans and potentially reduce the challenges associated with building new fabs from the ground up [GPT]. Premier Li Qiang stated that China is prepared for ‘external unexpected impacts’ [1]. These geopolitical factors influence TSMC’s strategic decisions [1].
potential impact on taiwan’s economy
Analysts suggest that increased U.S. investment by TSMC could reduce investments in Taiwan’s advanced manufacturing [1]. This shift might lead to Taiwanese backend service providers losing orders to American companies [1]. Concerns are also rising about the potential adverse effects on Taiwan’s exports and overall economic performance [1]. The concentration of advanced manufacturing in the U.S. raises questions about the long-term implications for Taiwan’s semiconductor industry [alert! ‘These are potential concerns voiced by analysts, not confirmed outcomes’] [1].
expert opinions and joint venture dynamics
Market analysts suggest that TSMC’s potential investment addresses calls to bolster Intel’s foundry business [1]. The proposed joint venture could transform Intel’s existing fabs into state-of-the-art facilities [1]. However, concerns persist regarding the collaboration’s details and potential ripple effects [1]. Nvidia is evaluating Intel as a potential manufacturing partner [6]. Akira Amari, a Japanese politician, stated that it is unlikely the US will ever reach self-sufficiency when it comes to semiconductor production [6].