TSMC Has Not Reported Intel Acquisition Plans to Taiwan Government, Minister Confirms

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Taiwan’s Minister of Economic Affairs Addresses Intel-TSMC Stake Rumors

In a recent interview with Taiwanese media, Minister of Economic Affairs Kuo Chih-hui provided updates on the speculation regarding Taiwan Semiconductor Manufacturing Company (TSMC) acquiring a 20% stake in Intel. The minister emphasized that his office has yet to receive formal notification about any such transaction, which would necessitate approval from Taiwan’s Investment Review Commission. Without these details, Minister Kuo refrained from discussing the matter further.

Intel’s Stock Performance Amid Speculation

Intel’s shares have experienced a notable increase of 13.70% this year, driven by investor optimism over a potential financial turnaround. However, recent uncertainty regarding Intel’s collaboration with TSMC may threaten to diminish these gains. TSMC has established itself as an industry leader, particularly in advanced semiconductor manufacturing, while Intel strives to reclaim its competitive edge in the market.

Challenges and Aspirations in Semiconductor Manufacturing

In his comments, Minister Kuo provided context about the strategic rationale behind a supposed investment by TSMC. He noted that Intel has faced longstanding challenges in advanced manufacturing processes, which has enabled TSMC to dominate the global semiconductor market. Intel, in an effort to enhance its position in the contract chip manufacturing sphere, is focused on implementing its 18A manufacturing process this year. Meanwhile, TSMC is preparing to launch its own cutting-edge 2-nanometer technology into mass production.

The Competitive Landscape: Intel vs. TSMC

With the introduction of its 18A technology, Intel aims to attract some of TSMC’s clients, despite relying on manufacturing some of its components through TSMC. Investor sentiment has buoyed Intel’s stock price as market players speculate that potential legislative support from the Trump administration may help Intel navigate its manufacturing dilemmas.

Future Implications and Regulatory Scrutinies

While speculation around TSMC’s role in Intel’s resurgence persists—including rumors of TSMC acquiring a significant share of Intel’s foundries—Minister Kuo reiterated that Taiwan’s Investment Review Commission is still waiting for formal submissions regarding any such transactions. It is important to note that any acquisition of a majority stake in Intel by TSMC would likely encounter antitrust reviews, given the critical nature of their operations in the global semiconductor landscape.

Market Reactions and Analyst Insights

In a related investment note, Mizuho assessed the market’s reactions to the rumors surrounding a potential partnership with TSMC. According to the firm, much of the enthusiasm surrounding Intel’s stock gains appeared linked to hopes that U. S.efforts to bolster advanced AI chip production could benefit the company. Recent market sentiments, however, have led to a contraction in these gains as uncertainty prevails over the probability of immediate collaboration.

If TSMC provides any formal updates, Minister Kuo affirmed that he would convey relevant details to the public and the investment review committee, underlining the government’s commitment to transparency in such significant business dealings.

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