During President Biden’s term of office in the Oval Office, his administration made it a point to stimulate investments in domestic production. One of the performance of the administration came in 2022, when Biden signed the Chips and Science Act – a law that wants to invest here in the US $ 280 billion in research and development and the production of semiconductors and semiconductors
In recent years, Intel emerged as one of the largest beneficiaries of chips act financing. Given the rising investments in the infrastructure of artificial intelligence (AI)-especially in data centers and chipware, I previously predicted that Intel could be a big winner among the new Trump-Administration Die, just like its predecessor, is aimed at improving domestic production investments.
A recent announcement of however Taiwan Semiconductor Manufacturing (NYSE: TSM) Let me reconsider my cautious optimism around Intel.
Let us explore the latest mess of Intel and assess why the latest announcement by Taiwan Semi could be the ultimate checkmate movement against his American Foundry -Rival.
Last year Intel generated $ 53.1 billion in total turnover. Although this year after year only a decrease of 2% represented, the results of the company’s foundry activities were alarming.
In 2024 Intel Foundry generated $ 17.5 billion in turnover – by 7% years after year. The foundry company competes directly with Taiwan Semi, which owns almost 60% of the global foundry market. In view of the fact that Intel Foundry slows down faster compared to the general company of the company, I am not confident that Intel proves that it can overtake its long -established rivals.
To add salt to the wound, Intel has just announced that it will now postpone a new factory in Ohio until 2030. As a reference, the factory was supposed to be operational between this year and 2026. Now it will be dropped off until the next decade.
On March 4, Taiwan Semi announced that it is investing $ 100 billion in the US to build three extra manufacturing factories, two packaging factories and a center for research and development (R&D). This investment is on the heels of an existing $ 65 billion project in Arizona, where TSMC builds up extra production options.
The investment of TSMC in the US is intended to help the company strengthen operational relationships with large customers, including Nvidia” AMD” WidthcomAnd Qualcomm.
In recent weeks, various technical giants in the beautiful seven group have made their respective plans to invest in AI infrastructure in the coming years. At first glance you might think that Intel could benefit from rising capital expenditures (Capex) of the largest contributors in AI. Instead, TSMC has taken note of the fight of Intel and I see the new investment of $ 100 billion in the US as a movement that can further strengthen the already dominant wrist on the foundry market.
