TSMC, Intel Foundry Partnership Unlikely, Citibank Says
14 April 2025 路 Uncategorized 路
Despite ongoing market volatility stemming from tariffs, Intel鈥檚 stock has been on the rise since 2025. Investors anticipate that strong support from the US government will enable Intel to successfully collaborate with TSMC and resolve its advanced process challenges. However, some Wall Street analysts remain skeptical of this outcome.
According to reports by wccftech, rumors suggest an agreement between Intel and TSMC for a joint venture managing Intel鈥檚 wafer fabs in America. This plan could attract orders from other IC design companies such as Qualcomm, NVIDIA, and Apple. Under the proposed deal, TSMC would hold 20% shares through its contribution of technology and expertise.
This partnership has raised concerns due to significant differences between their chip manufacturing processes鈥攄ifferences that are largely incompatible with each other鈥檚 systems. Citibank is highly doubtful about the feasibility of such a joint venture, citing operational disparities; it predicts any collaboration or operation by TSMC alongside Intel will likely fail because Intel's foundry business cannot compete effectively against TSMC.
Citigroup recommends instead that Intel exit its chip manufacturing services and focus solely on CPUs. The firm argues this strategy is more beneficial given the low probability of success in wafer fabrication, which would otherwise negatively impact cash flow.
Additionally, Bank of America recently expressed pessimism about such a deal due to potential regulatory hurdles and financial constraints.
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According to reports by wccftech, rumors suggest an agreement between Intel and TSMC for a joint venture managing Intel鈥檚 wafer fabs in America. This plan could attract orders from other IC design companies such as Qualcomm, NVIDIA, and Apple. Under the proposed deal, TSMC would hold 20% shares through its contribution of technology and expertise.
This partnership has raised concerns due to significant differences between their chip manufacturing processes鈥攄ifferences that are largely incompatible with each other鈥檚 systems. Citibank is highly doubtful about the feasibility of such a joint venture, citing operational disparities; it predicts any collaboration or operation by TSMC alongside Intel will likely fail because Intel's foundry business cannot compete effectively against TSMC.
Citigroup recommends instead that Intel exit its chip manufacturing services and focus solely on CPUs. The firm argues this strategy is more beneficial given the low probability of success in wafer fabrication, which would otherwise negatively impact cash flow.
Additionally, Bank of America recently expressed pessimism about such a deal due to potential regulatory hurdles and financial constraints.
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