Recently, rumors have been swirling about chip giants like TSMC (TSM.US) and Nvidia (NVDA.US) jointly acquiring Intel's (INTC.US) chip manufacturing business. However, top executives from TSMC and Nvidia have come forward to deny this news, leading the market to strongly question the reports of a "consortium of chip giants aiding Intel." As a result, Intel's share price plummeted nearly 7% on Wednesday, March 19.
Executives Deny Acquisition Rumors, Market Questions Report Authenticity
At Nvidia's annual developer conference (GTC) in San Jose, California, Nvidia CEO Jensen Huang clarified to reporters that the company has not been invited to join any consortium to acquire Intel's chip manufacturing facilities. Huang stated bluntly, "No one has invited us to participate in any acquisition. Perhaps there is a consortium, but we are not aware of it."
Similarly, TSMC Director Liu Jingsheng told the media that the TSMC board has never discussed acquiring Intel's chip manufacturing department. This statement further dispels previous market rumors about TSMC joining forces with Nvidia, AMD, Broadcom, and other chip giants to acquire Intel's chip manufacturing assets.
Market insiders pointed out that since February of this year, the rumors of Intel seeking to spin off its chip manufacturing business have been escalating, once propelling Intel's stock price up by over 25%. If these rumors were true, Intel could receive a massive cash inflow, helping it overcome long-standing operational difficulties. However, with the denials from TSMC and Nvidia executives, the market is now questioning the authenticity of these reports, speculating they might be "Fake News" affecting market transactions.
Intel's Chip Manufacturing Business Continues to Suffer Losses, Faces Technological Bottlenecks
In recent years, Intel has faced severe challenges in the chip manufacturing field, especially with increasing competition in advanced processes from TSMC and Samsung. Its chip foundry business achieved only $4.5 billion in revenue last quarter, down 13% year-on-year, with most revenue still relying on internal business, and it has been in a long-term loss state. Intel reported a net loss of $130 million in the fourth quarter, compared to a net profit of $2.67 billion in the same period last year, indicating significant performance pressure.
In the field of advanced processes, Intel relies on TSMC for 3nm AI PC chip foundry, while TSMC almost exclusively dominates the global market for AI chips with processes of 5nm and below, with Samsung holding only a small market share. TSMC projects to start mass production of 2nm chips in 2025, further widening the technological gap with Intel.
US Government Promotes Chip Manufacturing Return, TSMC Increases US Investment
In recent years, the US government has been strongly promoting the return of chip manufacturing to domestic shores, and enhancing control over the semiconductor supply chain. TSMC has responded actively, investing over $100 billion in building advanced wafer fabs in Arizona, one of which is completed and is expected to manufacture older A-series chips for Apple (AAPL.US) this year, with a second plant slated for production in 2028. TSMC has also been discussing production plans with Nvidia for Blackwell architecture AI GPUs.
Despite TSMC and Nvidia's status as the world's most important chip manufacturing and design giants, both companies have made it clear they will not take over Intel's chip manufacturing business, further proving that rumors of "chip giants joining hands to aid Intel" have no factual basis. This clarification has severely impacted Intel's stock price, reflecting the market's cautious attitude towards Intel's future development.
Conclusion: Acquisition Rumors Fall Flat, Intel's Challenges Persist
Intel has seen continued losses in its chip foundry business in recent years and faces the challenge of catching up technologically. The market once expected a consortium of industry giants like TSMC and Nvidia to provide financial and technical support. However, with the public denial of such rumors by both companies' executives, this possibility has virtually vanished.
Intel will still need to rely on internal reforms and support from the US government to turn its situation around, while its competitiveness in the advanced process chip field remains uncertain. With TSMC and Samsung advancing in processes of 2nm and below, Intel has a long way to go to regain its leading position in chip manufacturing.
