TSMC Declares No Plans for Joint Venture with Intel, Claims Arizona Fab Production Yields Match Taiwan Facilities

TSMC Declares No Plans for Joint Venture with Intel, Claims Arizona Fab Production Yields Match Taiwan Facilities

This article should not be considered as investment advice. The author does not hold any positions in the stocks mentioned.

TSMC’s Strong Q1 2025 Performance and Future Outlook

In a noteworthy development that heightens Intel’s already precarious position, TSMC has unequivocally stated during its recent earnings call that it has no intention of forming joint ventures with other firms. This remark comes amid a strong performance for TSMC, which has reported robust first quarter results for 2025.

Outstanding Financial Metrics

TSMC reported a revenue of $25.77 billion for Q1 2025, surpassing market expectations of $25.72 billion. Looking ahead, the semiconductor giant projects its second quarter revenue to fall between $28.4 billion and $29.2 billion, with a midpoint estimate of $28.8 billion. Given this trajectory, TSMC is on track for a substantial $109 billion in revenue for the fiscal year 2025.

Customer Demand and Production Updates

Addressing concerns over U. S.tariffs, TSMC has reported no adverse effects on customer behavior. This is significant, especially considering NVIDIA and AMD have faced serious financial repercussions due to the recent regulatory changes impacting GPU licensing.

Importantly, TSMC has disclosed that production yields at its Arizona facility now match those of its operations in Taiwan. The company is also planning to boost its U. S.investment to a staggering $165 billion.

TSMC’s Stance on Joint Ventures

The most significant takeaway from TSMC’s earnings call was its clear refusal to enter into any joint venture or technology transfer arrangements, particularly with Intel. Speculation had been rife that Intel and TSMC were nearing an agreement to form a joint venture to manage Intel’s U. S.-based fabrication plants, potentially including other major chip designers like Qualcomm and Apple. However, the Taiwanese manufacturer has put those rumors to rest.

Citi analysts have long doubted the feasibility of a joint venture between TSMC and Intel, stating,

“We do not believe TSMC operating/forming a JV with Intel would work given differences in manufacturing and operations.”

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