Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest specialized electronic chip manufacturer, has rejected the idea of acquiring Intel’s factories despite the challenges Intel faces in attracting customers for its chip manufacturing services.
This decision comes at a critical time when Intel is struggling to attract customers to its manufacturing sector, putting its CEO Pat Gelsinger’s strategy under scrutiny with questions about its effectiveness in achieving the desired success.
TSMC’s CEO, C.C. Wei, firmly stated that there are no intentions to discuss the possibility of purchasing Intel’s factories, denying any rumors or speculations, despite rumors of Intel selling its manufacturing sector.
Acquiring Intel’s factories would require huge financial investments, and even for a company like TSMC with significant resources, this step appears to be fraught with financial and technical challenges. Intel’s factories are designed to suit its own operations and products, making it a complex and costly process to modify them to meet TSMC’s needs.
Moreover, the differences in business structure between the two companies are a major factor preventing the deal from being executed, as TSMC relies on an agile institutional structure specialized in chip manufacturing for other companies, while Intel adopts a comprehensive model that combines design and in-house manufacturing.
Furthermore, any acquisition of this size may face resistance from regulatory antitrust authorities, adding another layer of complexity. It could also lead to geopolitical tensions given the importance of both companies in the advanced technology sector.
Reports suggest that TSMC’s lack of interest in Intel’s manufacturing sector stems from the differing nature of each company’s businesses. TSMC focuses entirely on on-demand chip manufacturing, while Intel relies on manufacturing its own chips, making the idea of TSMC acquiring Intel’s factories unlikely to materialize.
