Rumors continue about a potential deal between Intel and TSMC, which would see the latter take greater control of the former's U.S. operations, with TSMC CEO Dr. Wei Zhejia ruling out the possibility of taking over Intel's facilities during the company's third-quarter 2024 earnings call. In January this year, when Wei was asked again whether his company was interested in taking over Intel's factories, his answer was more low-key, simply stating that TSMC values all customers and declining to comment further on the matter.
Intel's recent stock price performance has surprised many people. Although the company's operating conditions have not improved significantly, it has risen 16% year to date. The company's stock price has risen 22% in the past five days following remarks by U.S. Vice President J.D. Vance about manufacturing the most advanced artificial intelligence chips in the United States and rumors that the Trump administration is pressuring TSMC to form a joint venture with Intel or directly acquire and operate the company's chip factories.
Although news of possible cooperation between Intel and TSMC did not begin to leak publicly until 2025, TSMC CEO Dr. Wei Zhejia was asked about it as early as last October during the third quarter earnings conference call.
At that time, Morgan Stanley analyst Charlie Chan asked Wei Zhejia whether the company had considered acquiring some of Intel's fabs in the long term. Wei Zhejia's answer was direct and clear. He simply replied: "The answer is no. Well, no, not at all." The executive later said that Intel is a very "good customer" of TSMC and has delivered "considerable business" to TSMC.
After the third-quarter earnings call in October, Wei was asked again whether the company's prospects for taking over Intel's fabs had changed. This time, Wei Zhejia's answer was measured.
In response to JPMorgan's Gokul Hariharan, the CEO replied: "They are very good customers. I like them and they are very important to TSMC's business." He obviously did not directly answer the question about taking over the fab, and finally said: "That's all I can say."
TSMC's U.S. operations and its exports to the United States have come under renewed scrutiny from the Trump administration. The President of the United States has proposed imposing tariffs of up to 100% on Taiwanese chips because he believes that Taiwan has "stole away" the leading position in American chip manufacturing.
In this regard, Taiwan President Lai Ching-te recently stated that the government will discuss the tariff issue with the industry and then propose a solution to the US President. Lai stressed the importance of establishing a "democratic semiconductor supply chain," adding that it is Taiwan's goal to contribute to the international community.
TSMC is Taiwan’s largest company by market capitalization and revenue. Any tariffs on its products would deal a heavy blow to Taiwan's economy and national security. In Taiwan, the wafer fab is often called the "Sacred Mountain that protects the country" because its importance in the global chip supply chain has enhanced Taiwan's international status.