TSMC Denies Intel Investment Rumors, Intel Shares Drop 7%

Recent speculation about TSMC investing in Intel has been dismissed by TSMC board member Paul Liu. On March 19, Liu stated that the board has never discussed any plans for such an investment. He emphasized that TSMC's U.S. manufacturing facilities are at least three years behind those in Taiwan, reaffirming that the company's most advanced semiconductor processes will remain in Taiwan. Following his remarks, Intel's stock price dropped nearly 7% at market close on the same day.

Liu also outlined key principles guiding TSMC's expansion in the United States, stating that the company will not transfer its latest technology abroad, critical technologies will remain in Taiwan, and regional security considerations will take precedence. He confirmed that TSMC's overseas operations will follow the “N-1” principle, ensuring that only slightly older process nodes are deployed outside Taiwan.

Market speculation had previously suggested that Intel and TSMC were exploring potential collaboration in semiconductor manufacturing, with reports indicating that NVIDIA and AMD might also be involved. These rumors had contributed to Intel's stock gaining over 19% this year. However, following Liu's clarification, Intel's stock saw a sharp decline of nearly 7% on March 19.

Concerns have been raised about potential shifts in the global supply chain due to TSMC's expansion in the United States. In response, Liu stated that this should not be viewed as an exodus but rather as an opportunity for Taiwan-based companies to expand their presence in the U.S. market. He expressed confidence that this wave of investment would bring positive benefits to Taiwan's semiconductor industry.

Intel's recent leadership transition and shifts in its chip manufacturing strategy have also been key factors influencing investor sentiment. The recent appointment of Justin Chen as Intel's new CEO has been seen as a positive development, given his extensive experience in the semiconductor industry.

Meanwhile, NVIDIA has also denied rumors of investing in Intel. CEO Jensen Huang stated that the company has not received any invitation to acquire Intel shares. During NVIDIA’s annual developer conference in San Jose, California, Huang was asked whether NVIDIA was part of a consortium with TSMC to acquire Intel. He responded, “No one has invited us to join any consortium. Maybe others are involved, but I don't know. There might be a party, but I haven't been invited.”