TSMC Says It Has No Intention Of Forming A JV With Intel, Asserts That Its Production Yields In The Arizona Fab Are Comparable To Those In Taiwan Facilities

In what is nothing short of a bombshell commentary that again places Intel's future within the raging vortex of uncertainty, TSMC has declared during its earnings call that it is not interested in forming a JV with other companies.

For the benefit of those who might not be aware, TSMC has just published solid results for its Q1 2025 earnings, managing to post a trifecta of beats: exceeded consensus expectations on its top-line and bottom-line metrics as well as raised its revenue guidance for the ongoing second quarter by $1.6 billion (based on the midpoint of the provided range).

TSMC earned $25.77 billion in revenue in Q1 2025 vs. expectations of $25.72 billion. For Q2, the fab giant expects to haul in revenues of between $28.4 billion and $29.2 billion (midpoint at $28.8 billion). Based on its visible H1 run-rate, TSMC is now on course to haul in $109 billion in revenue for FY 2025.

Elsewhere, while conceding to the US tariff-related uncertainties ahead, TSMC says that it has seen no impact on customer behavior so far. As a refresher, NVIDIA and AMD have both disclosed significant financial hits from the Trump administration's recent imposition of licensing requirements on the H20 and MI308 GPUs, respectively.

Also, TSMC has declared that the yields in its Arizona fab are now comparable to those in its Taiwan facilities. Moreover, the company now intends to increase its investments in the US to $165 billion.

Of course, the most critical comment to come out of TSMC's earnings call was its refusal to enter into any JV or technology transfer agreements with other companies, read Intel. Bear in mind that reports in recent days indicated that Intel and TSMC had apparently reached an understanding to constitute a JV that would then manage Intel's US-based fabs. The arrangement would have also roped in other chip designers such as Qualcomm, NVIDIA, and Apple. For its part, TSMC would have retained a 20 percent stake in the JV, financed via its in-kind contribution of technology and expertise. The Taiwanese fab giant, however, has now clearly denied any possibility of just such an outcome.

Citi, of course, has remained skeptical of a JV between TSMC and Intel from the beginning, going on to declare:

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

About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.

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