Taiwan Semiconductor Manufacturing Co. (TSMC) has denied reports of any discussions to form a joint venture or share technology with Intel Corp, according to CEO C.C. Wei.

Wei made the statement during a conference call with analysts.

He asserted that TSMC is not engaged in any talks about joint ventures or technology licensing with other companies.

This denial follows speculation, including a report by the information in April that suggested an initial agreement between TSMC and Intel to collaborate on chip plants.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Contrasting business models create natural barriers to collaboration

TSMC’s denial of talks with Intel highlights the fundamental business model differences between the two semiconductor giants.

Since its founding in 1987, TSMC has operated as a pure-play foundry focused solely on manufacturing chips designed by others, creating an ecosystem that revolutionized the semiconductor industry by separating design from production 1.

This contrasts sharply with Intel’s traditional integrated device manufacturer (IDM) model where it controlled both design and manufacturing, giving it different operational priorities and manufacturing methodologies 2.

These structural differences have created distinct company cultures and technical approaches that make meaningful collaboration particularly challenging, despite Intel’s recent pivot toward offering foundry services to external customers 3.

TSMC’s business model depends on maintaining strict neutrality among its customers (including Intel’s competitors like AMD and Nvidia), making any deep partnership with Intel potentially problematic for its relationships with other major clients.

2️⃣ The high-stakes race for process leadership intensifies industry competition

Wei’s firm denial comes amid an unprecedented technological race in semiconductor manufacturing that makes strategic independence increasingly valuable.

TSMC plans to begin mass production of its 1.6nm process by 2026, while Intel aims to launch its comparable 18A (1.8nm) process by the end of 2025, with both companies investing billions in these next-generation technologies 4.

The competitive dynamics are evident in TSMC’s dominant 64.9% share of the global foundry market compared to Intel’s struggles, including an $18.8 billion net loss reported for 2024 56.