This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
With rumors swirling around of a potential deal between Intel and TSMC to allow the latter greater control over the former's US operations, TSMC CEO Dr. C.C. Wei had ruled out taking over Intel's facilities during the firm's earnings call for Q3 2024. Wei was asked again in January whether his firm would be interested in taking over Intel's facilities, and his response was more muted as the executive simply shared that TSMC values all of its customers and refused to comment further on the matter.
TSMC CEO Had Ruled Out Buying Intel's Foundries In 2024 & Refused Comment This January
Intel's shares, to the surprise of many, have gained 16% year-to-date despite no meaningful turnaround in the firm's operations. The stock is up by 22% over the past five days as it marks its gains following Vice President JD Vance's comments about making the most advanced AI chips in America and rumors of the Trump administration pressing TSMC to either enter into a joint venture with Intel or outright buy and operate the firm's chip factories.
However, while news of a tie up between Intel and TSMC has only publicly started to make rounds in 2025, TSMC's CEO Dr. C.C. Wei had been asked about the affair as early as the firm's third quarter earnings call in October last year.
Back then, Morgan Stanley analyst Charlie Chan asked Wei whether his firm had considered acquiring a part of Intel's fabs in the long term. Wei's response was direct and clear as he simply replied, "The answer is no. Okay, no, not at all." The executive then proceeded to share that Intel was a very "good customer" for TSMC and was sending "sizable business" to the firm.
After the third quarter earnings call in October, Wei was again asked about whether anything had changed regarding his firm's outlook for taking over Intel's fabs. This time around, Wei's response was calibrated.
Responding to JPMorgan's Gokul Hariharan, the CEO replied that, "They are very good customers. I like them, and they are very important to TSMC's business also." However, he didn't directly address the question of taking over the fabs and concluded by remarking, "That's all I can say."
TSMC's business in the US and its exports to America have come under fresh scrutiny under the Trump administration. The President has proposed levying a whopping 100% tariffs on Taiwan's chips, as he believes that the island region has stolen America's chip manufacturing lead.
In response, Taiwan President Lai Ching-te outlined recently that his government will discuss the tariffs with the industry and then offer solutions to the US President. Lai stressed that it is important to build a "democratic supply chain" for semiconductors, adding that it was his country's goal to contribute to the international community.
TSMC is Taiwan's largest firm in terms of market value and revenue. Any tariffs on its products will deal a hefty blow to the island's economy and its national security. The fab is often referred to as a 'sacred mountain' in Taiwan as its criticality in the global chip supply chain bolsters Taiwan's international stature.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
Follow Wccftech on Google to get more of our news coverage in your feeds.
