Regarding the recent widespread rumors that TSMC will collaborate with Intel, a struggling American chip giant, and establish a joint venture to share wafer factories and process technologies, TSMC CEO C.C. Wei personally denied this at the earnings call on 4/17, emphasizing that there are no discussions about technology licensing or joint ventures.
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ToggleTrump Administration Mediates, TSMC and Intel Hold Confidential Talks on Cooperation
According to Bloomberg, Trump led talks between TSMC and Intel in February, reportedly to help Intel, which has undergone personnel cuts and expansion limitations, regain its footing. One concept was for TSMC to assist Intel in managing part of its wafer factory operations.
C.C. Wei Announces Additional $100 Billion Investment, Appears with Trump
Beyond the cooperation rumors, TSMC apparently has a larger strategy. In March, C.C. Wei visited the White House with Trump to announce an additional $100 billion investment in the chip industry.
The public believes this is TSMC's continued expansion of its US manufacturing, unrelated to any Intel collaboration. In the same month, Intel also replaced its CEO, with industry veteran Lip-Bu Tan taking over to try to reverse its decline.
Foreign Media Claims Preliminary Joint Venture Agreement Reached
In early April, foreign media reported that TSMC and Intel had reached a preliminary agreement to establish a joint venture company to jointly operate part of Intel's chip factories, shocking the industry.
However, this report has never been confirmed by either party.
C.C. Wei Refutes Rumors, TSMC Has Not Discussed Cooperation or Technology Licensing
At the latest earnings call on 4/17, C.C. Wei directly refuted the rumors, explicitly denying any form of cooperation, technology licensing, or joint venture discussions with Intel. He emphasized that TSMC will continue to focus on its core business and not be distracted by external influences.
"TSMC is currently not discussing any joint ventures, technology licensing, or technological cooperation with any company," C.C. Wei emphasized.
TSMC Maintains 2025 Growth Forecast, Addressing Potential Trade War Risks
Despite external uncertainties, such as the ongoing US-China tech war and supply chain challenges, TSMC has chosen to maintain its 2025 revenue growth expectations, representing high confidence in its competitiveness and global chip demand prospects.
Summary of This Earnings Call Observations
- Q1 Revenue: Year-on-year decrease, but slightly better than expected
- Q2 Forecast: 13% quarter-on-quarter growth, supported by AI
- AI Orders: Annual revenue expected to double, CAGR over 40% in the next five years
- US Expansion: Increased to $165 billion, targeting advanced process cluster establishment
- Geopolitical Response: No significant tariff impact, already discussing pricing strategies with clients
- Technology Progress: 2nm and A16 will be the next technological focus
- Overseas Profit Margin Dilution: 2-4% pressure annually, but maintaining long-term gross margin target above 53%
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