The world's largest foundry (semiconductor contract manufacturing) corporation TSMC is reported to not be discussing investments in Intel. Initially, TSMC was said to be requested by the U.S. government to acquire equity in Intel, but TSMC has determined that the practical benefits are minimal. Following this news, Intel's stock price plummeted nearly 7% in just one day.
On the 19th (local time), Liu Jingqing, Chairperson of the National Development Council, TSMC's largest shareholder, stated regarding the possibility of cooperation between TSMC and Intel, "It is like mixing diesel and gasoline. We have not pursued investment discussions." The Taiwan Economic Daily reported that "TSMC's board is concerned about the possibility of core technology leakage, including U.S. investments."
Intel exited the foundry business in 2018 and re-entered in 2021. At the time of the re-entry announcement, Intel planned to invest a total of over $100 billion (approximately 145 trillion won) over five years to establish four advanced semiconductor factories in four U.S. states and expand existing facilities. However, after facing difficulties in the foundry business, last year Intel reported a loss of $13.4 billion (approximately 19.48 trillion won) in its foundry institutional sector alone.
Last month, foreign media including Bloomberg reported that TSMC was considering acquiring equity in Intel's factory and operating it at the request of the Trump administration. Rumors also emerged that TSMC proposed equity investments to U.S. semiconductor corporations such as Nvidia, AMD, Broadcom, and Qualcomm regarding a joint venture to operate Intel's factory. It is said that TSMC would operate Intel’s foundry institutional sector but would not exceed a 50% equity stake.
However, concerns about technology leakage due to excessive demands from the U.S. government have grown locally in Taiwan, leading TSMC to seemingly express a negative stance on investing in Intel. The Economic Daily reported, "There are concerns about a supply chain 'exodus' due to TSMC's expansion of U.S. investments," stating that "Chairperson Liu Jingqing added that the latest technologies will not be transferred, and we will prioritize national security while ensuring security regulations will be integrated into U.S. investment principles."
As TSMC expressed this opinion, Intel's stock price fell by 6.94% in one day. Initially, it was noted that with the appointment of Pat Gelsinger as Chief Executive Officer (CEO), TSMC, along with other big tech companies in the U.S., was expected to participate in investments aimed at restoring Intel's competitiveness, causing Intel's stock price to rise by about 30%. A semiconductor industry official noted, "The expectation that the foundry, which had been holding down Intel's stock, could recover competitiveness through cooperation with U.S. big tech and TSMC was reflected in the investments. However, as it seems that these plans will fall through, it is assumed that the stock price has declined."
Meanwhile, Jensen Huang, Chief Executive Officer (CEO) of Nvidia, also noted that there have been no discussions regarding acquiring equity in Intel's foundry with TSMC. CEO Huang stated at Nvidia's annual event 'GTC 2025' held in San Jose, California, on the 19th, "I do not know where the rumor about investing in Intel's equity came from. Others may have been involved in forming a consortium, but I have not."