TSMC's Rise: Intel's Missed Opportunity Determines the Winner of the Chip War

Intel Missed Opportunity: TSMC's $908 Billion Raise

Morris Chang's proposal, which Intel rejected decades ago, has become a historic milestone in today's semiconductor world. Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) has overtaken Intel by its market value and is the winner of the global chip war.

📊 Financial Performance and Investment Power of TSMC

• TSMC is the 11th most valuable company in the world, with a market capitalization of $908.78 billion as of May 2025.
• Controlling more than 60% of the global foundry market, the company has seen steady growth in revenue and profit margins.
• Strategic collaborations with giants such as Apple, AMD and Nvidia are constantly pushing their revenues upwards.
• Since 2014, TSMC shares have risen over 231%.
• Its IPO in the United States in 1997 as ADR kept global investor interest consistently fresh.

👨 ‍ 💼 Intel's Rejected Offer and What Followed the Historic Decision

• Morris Chang, founder of TSMC, offered Intel a partnership for financing, but the company rejected the offer.
• Talks with Intel's then-chief executive Craig Barrett were fruitless.
• Philips, the only interested company, was involved in the project with an investment of 28%.
• The Taiwanese government made possible the establishment of TSMC with 48% support.
• Founded in 1987, TSMC is today at the heart of the semiconductor industry.

🧪 Foundry Model and Fabless Revolution

• TSMC has stood out for its customized manufacturing capabilities by adopting the fabless chip manufacturing model.
• Thanks to this model, he separated production with design and maximized efficiency.
• Global customers directed production to TSMC while remaining independent in the design process.
• The model made it possible to innovate faster at a lower cost.
• Intel, on the other hand, was late in adopting this model and lost its competitive advantage.

🌍 Intel's Losses and Strategic Restructuring

• Intel's stock value has fallen more than 64% in the past five years.
• Artificial intelligence has lost the leadership in the GPU and mobile chip areas to Nvidia and AMD.
• CEO Lip-Bu Tan explained that there is no quick fix and a multi-year transformation is needed.
• Repositioning in edge computing and high-performance computing is targeted.
• But in the short term, it seems difficult for Intel to regain the lead.

📉 Valuation Gap: TSMC vs Intel

• Intel's market capitalization is currently only $91.60 billion.
• TSMC has won the confidence of the market, outpacing Intel by a margin of close to 10 times.
• Institutional investors see TSMC as a longer-term growth engine.
• Intel's competitiveness in the traditional x86 space is also weakening day by day.
• In future projections, TSMC is expected to further strengthen its position.

🧠 Expert Review

Intel's strategic mistakes in the past are an important lesson for today's investors. TSMC's early adoption of its fabless model and growth by establishing the right partnerships offers a safe harbor for long-term investors. While there are limited signs of recovery for Intel in the short term, its investments in AI and edge computing could create potential in the medium term. In the long term, its ability to remain competitive will depend on the success of the transformation process.

✅ Take Action

Chip wars and market dynamics are changing rapidly. TSMC's rise and Intel's transformation efforts hold both opportunity and risk for investors. Do not miss analyzes and expert comments to get a position with the right timing.
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🛑 Disclaimer

This content is created by Investment Desk AI and does not constitute investment advice. You should make your decisions based on your own research and expert advisors.

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