TSMC Declares No Plans To Acquire Intel's Foundry Division

In a major announcement that sent ripples through the semiconductor industry, Taiwan Semiconductor Manufacturing Company (TSMC) declared it has no plans to acquire Intel's foundry division. This revelation was made by Paul Liu, a board member of TSMC and the head of Taiwan's National Development Council, during a press conference held on March 19, 2025. Following this announcement, Intel’s stock price saw a sharp decline of nearly 7%, highlighting the significant impact of TSMC's decision on market sentiment.

Liu was clear and emphatic, stating, "We are not considering acquiring Intel's foundry business." He further elaborated that there had not been any discussions within the TSMC board regarding the acquisition of Intel's foundry operations, underscoring a determined stance against such a move.

One critical aspect of Liu's comments revolved around the incompatibility of technologies and business models between TSMC and Intel. Liu remarked that the combination of their operations would be "difficult to burn together like diesel and gasoline," illustrating the fundamental differences that would make collaboration challenging. This statement not only highlights the technological divide but also reflects TSMC's strategic evaluation of potential partnerships.

The backdrop to Liu's statement includes a report from Reuters on March 12, 2025, which indicated that TSMC had been considering equity investments from major American companies such as NVIDIA, AMD, and Broadcom in relation to a joint operation of Intel's factories. However, this notion appears to have shifted dramatically in light of Liu's clarification. TSMC's lack of interest in Intel's foundry division has put a definitive end to speculation that had swirled in business circles.

Furthermore, Liu emphasized TSMC’s firm commitment to its Taiwan-first strategy, which prioritizes the execution of advanced manufacturing processes in Taiwan before contemplating any business expansion into the United States. "We will adhere to the Taiwan-first strategy, prioritizing the implementation of the most advanced manufacturing processes in Taiwan," Liu stated, reinforcing this point as central to TSMC's operational philosophy.

This development has significant implications for both TSMC and Intel as they navigate a highly competitive landscape in the semiconductor industry. TSMC, recognized globally as the largest semiconductor foundry, has been pivotal in advanced manufacturing technology, whereas Intel has been working tirelessly to regain its footing in the domestic and international markets.

The immediate fallout of TSMC's announcement is visible in the stock market, where Intel's shares reacted negatively to Liu's firm denial. Investors had harbored hopes that a partnership or acquisition could launch Intel into a stronger competitive position; however, the reality articulated by Liu has dashed those expectations.

As TSMC continues to solidify its dominance, the company’s adherence to a strategy that focuses on local advancements speaks volumes about its future direction. While the semiconductor market continues to evolve, the dynamics between key players such as TSMC and Intel will undoubtedly shape upcoming developments.

In summary, TSMC's official announcement regarding the non-interest in Intel's foundry operations not only highlights the strategic direction of both companies but also reflects the broader complexities within the semiconductor industry. The rejection of a possible acquisition signifies more than just a financial decision; it underscores a pivotal moment in the ongoing technological arms race where compatibility and coherence in business philosophies are paramount.

As global demand for semiconductors continues to rise, the pathways chosen by enterprises like TSMC and Intel will set precedents for others in the sector. With TSMC firmly positioned to prioritize its Taiwanese roots, the unfolding story is sure to be watched closely by industry analysts and stakeholders alike.