TSMC CEO Acknowledges Intel as Strong Competitor, Emphasizes No Shortcuts in Foundry Industry

During TSMC’s Q1 2026 earnings call, the semiconductor giant addressed its significant financial growth while acknowledging Intel’s competitive posture in the foundry landscape. TSMC’s discussion also emphasized the advantages of its A14 process node, underscoring its ongoing innovations in semiconductor technology.

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In the first quarter of fiscal year 2026, TSMC reported an impressive revenue of $35.9 billion, representing a 6.4% quarter-over-quarter increase. C.C. Wei, TSMC’s Chairman and CEO, painted a picture of the company’s current endeavors in the foundry space, offered insights into forthcoming technology nodes, and analyzed the state of competition and supply chain challenges.

Revenue Distribution by Technology for Q1 2026

Wei reported that TSMC views Intel as a formidable rival, noting its burgeoning partnership with Tesla on the Terafab initiative. While both companies are competitive forces, they also remain significant clients for TSMC. When discussing each player’s ambitions in chip manufacturing, Wei stressed that establishing a successful foundry is a complex and time-consuming endeavor.

“Building a chip fabrication plant typically spans 2-3 years, with an additional 1-2 years required for ramping up production, ” he indicated, highlighting TSMC’s journey to success as a testament to the intricate landscape of the semiconductor industry.

Tesla’s Terafab is poised to begin with an output of approximately 3, 000 wafers monthly during initial trials. However, full production capacity will take time, necessitating Tesla’s continued reliance on external semiconductor suppliers. In contrast, Intel is working on critical products, including the 18A and 14A nodes, the latter being essential for its strategic direction, with expectations that notable clients like NVIDIA will join the lineup.

Both Intel and Tesla are our customers, and we recognize Intel as a formidable competitor and do not take them lightly. However, in this industry, there are no shortcuts. Established principles of the foundry business remain unchanged.

Success requires technological leadership, manufacturing excellence, customer trust, and outstanding service. Building new fabs takes 2-3 years, with another 1-2 years for production ramp-up. We remain confident in our technological edge and diligently pursue every business opportunity.

C. C.Wei – TSMC Chairman & CEO

In examining Intel’s EMIB technology, Wei noted that TSMC currently supplies the largest reticle-sized packaging utilized by leading chip manufacturers. He acknowledged EMIB as a significant competitive technology that offers additional options to customers.

Intel’s EMIB and EMIB-T advanced packaging technologies promise advantages like enhanced scalability while maintaining cost efficiency, making these offerings notable in the context of TSMC’s 2.5D packaging solutions.

At TSMC, we provide the industry’s largest reticle size packaging. While our competitors have their own compelling technologies, we welcome this competition, as it enriches customer choices and fosters business growth for us all.

C. C.Wei – TSMC Chairman & CEO

Turning to technological advancements, TSMC’s N2 process technology has commenced high-volume manufacturing since Q4 2025, yielding impressive results. This node employs first-generation nanosheet technology and will be integral to AMD’s next-gen EPYC Venice CPUs, based on the Zen 6 architecture.

Celebration of AMD's First Product using TSMC's N2 NanoSheet Technology

The N2 family aims to be a sustainable solution with multiple iterations. TSMC has also developed strategies to combat supply chain challenges caused by ongoing geopolitical issues, ensuring a stable supply of essential materials. Currently, the company has a three-month supply of LPG at its disposal.

With the accelerating demand for AI technologies, the N2 node is set to play a pivotal role in power-intensive applications. This node, alongside other technology advancements like Intel’s forthcoming Nova Lake and AMD’s Ryzen platforms, will leverage N2P process technology.

Our N2 node has successfully entered high-volume production since late 2025. It is ramping efficiently across our facilities, fueled by robust demand from smartphone and HPC AI sectors. Through continuous enhancements like N2P and A16, we anticipate the N2 family will be enduringly impactful for TSMC.

C. C.Wei – TSMC Chairman & CEO

Finally, Wei discussed the upcoming A14 (1.4nm) process technology, which promises significant advancements including a 10-15% speed increase at consistent power levels and a 20% boost in chip density. The A14 node is projected to reach volume production by 2028, reinforcing TSMC’s commitment to innovation in high-performance, energy-efficient computing.

The A14, which features our second-generation nanosheet transistor structure, will denote a significant leap forward from N2, showcasing gains in performance and efficiency critical to next-generation computing demands. A14 aims to deliver substantial benefits, with strong interest from customers across the smartphone and HPC landscapes as we prepare for volume production in 2028.

C. C.Wei – TSMC Chairman & CEO

Overall, TSMC’s confidence in its capabilities as a leading foundry underscores its commitment to advancing semiconductor technology, which is vital for the ongoing evolution of tech and the emergence of AI innovations.

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