Taiwan Semiconductor Manufacturing Company (TSM) is reportedly considering running Intel’s (INTC) US factories at the request of US President Donald Trump’s team, according to reports from Bloomberg. Baird technology desk sector strategist Ted Mortonson joins Julie Hyman and Josh Schafer on Market Domination.
"Intel is somewhat of a sinking ship right now," Mortonson says, explaining the legacy chipmaker is "having a lot of trouble" in its foundry business while also searching for a new CEO after Pat Gelsinger’s sudden departure in December 2024. He sees TSMC as "the gold-plated area of manufactured at these advanced nodes" which has already "cracked the code" at making advanced nodes.
"When you talk about GenAI, you need to be there, and Intel is not," he tells Yahoo Finance.
Mortonson finds the administration’s move as not totally unexpected: "Intel is a national asset, not only from a security standpoint but [for] manufacturing in the US. [Intel needs] some help, and TSM is the only one that can render the lifeboat.
Watch the video above to hear more about what a TSMC partnership could mean for Intel and the chipmakers’ competitive position among the likes of Nvidia (NVDA) and AMD (AMD).
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
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