During President Biden’s mandate in the Oval Office, his administration made a duty to stimulate investments in interior manufacturing. One of the achievements of the administration occurred in 2022, when Biden signed the chips and science act-a law that seeks to invest $ 280 billion in the research and development and manufacture of semiconductors here in the United States
Over the past two years, Intel has become one of the largest Financing of the beneficiaries of the Puaces Act. Given the increase in investments in the infrastructure of artificial intelligence (AI) – in particular in data centers and chip software – I predicted that Intel could be a big winner under the new Trump administration – which, like its predecessor, is focused on improving national manufacturing investments.
However, a recent announcement of Manufacture of Taiwan semiconductors (NYSE: TSM) This makes me reconsider my careful optimism around Intel.
Let’s explore the latest escape from Intel and assess why the last announcement of Taiwan Semi could be the ultimate shift of checkmate against his rival of the American foundry.
Last year, Intel generated $ 53.1 billion in total income. Although this represents only a decrease of 2% year by year, the results of the company’s foundry activity were more alarming.
In 2024, Intel Foundry generated $ 17.5 billion in sales – down 7% from one year to the next. The foundry company competes directly with Taiwan Semi, which holds nearly 60% of the world foundry market. Given that Intel Foundry deceleration at a faster rate compared to the overall activity of the company, I am not too confident that Intel proves that it can catch up for its long -standing established rivals.
To add salt to the wound, Intel has just announced that it now delays the opening of a new factory in Ohio until 2030. For reference, the factory was supposed to be operational between this year and 2026. Now, it is postponed to the next decade.
On March 4, Taiwan Semi announced that it is investing $ 100 billion in the United States to build three additional manufacturing factories, two packaging factories and one Research and development (R&D) Center. This investment comes on a $ 65 billion project existing in Arizona, where TSMC builds additional manufacturing capacities.
TSMC’s investment in the United States is intended to help the company strengthen operational relations with the main customers, especially Nvidia,, Dmla,, BroadcomAnd Qualcomm.
In recent weeks, several giants of the magnificent Seven group have made their respective plans public to invest in AI infrastructure in the coming years. On the surface, you might think that Intel could benefit from the increase in capital expenditure (CAPEX) of the largest contributors to AI. Instead, TSMC took note of Intel’s difficulties, and I see the new $ 100 billion investment in the United States as a decision that could still strengthen its already dominant impetus on the funds market.
