TAIPEI (Taiwan News) — Intel CEO Pat Gelsinger’s resignation on Dec. 1 could benefit Taiwan Semiconductor Manufacturing Company’s (TSMC) production.
The industry veteran left Intel in the red and at a crossroads, Nikkei Asia reported Thursday (Dec. 12). There are signs that Intel might not pursue Gelsinger’s IDM 2.0 strategy, meant to turn the company into a leading chip designer and contract chipmaker.
Bank of America semiconductor analyst Vivek Arya said that given the lack of results from Gelsinger’s strategy, the move does not come as a surprise.
However, uncertainty at Intel could give TSMC a boost. Macquarie Capital Head of Asia Technology Research Damian Thong said Intel’s leadership change could affect their capex plans.
“At the very least, we doubt Intel will commit to significant spending outside the US,” Thong said. He added should Intel increase foundry outsourcing, it would be a net positive for TSMC.
Meanwhile, TSMC partnered with Arizona-based Amkor in October to bring chip production to the US. However, it is unlikely that Washington would allow the Taiwan chip maker to acquire Intel’s foundry for national security reasons, GlobalData analyst Mike Orme said.
“There is no way that TSMC or Samsung would be allowed anywhere near Intel Foundry,” he added.
Intel CFO and interim CEO Dave Zinsner said the company’s core strategy remains intact. “We want to be the Western provider of leading-edge silicon to customers. That remains our goal,” he added.