TSMC Can Breathe Easy. Intel Will Keep Making Chips
The Taiwanese company is likely better off without a reliant client whose demand is unsteady.
Churning chips.
Photographer: Aaron M. Sprecher/Bloomberg
Intel Corp.’s surprise resolve to stick with chip manufacturing is a move that ought to bring a sigh of relief to leading foundry Taiwan Semiconductor Manufacturing Co.
Incoming Intel chief Pat Gelsinger quickly put to rest any notion that it may follow the route taken by contemporaries, including Advanced Micro Devices Inc., by ditching production altogether to save the cost of building and running factories. He even doubled down, pledging to chase the high-end instead of simply handing this work to custom manufacturers like TSMC.
“We work to close any gaps with external foundries as well as keep ahead,” Gelsinger said overnight in announcing earnings. “And clearly we’re not interested in just closing gaps, we’re interested in resuming that position of the unquestioned leader in process technology.”