Taiwan Semiconductor takes over chip foundry? Intel's stock price rises to "the strongest week of the 21st century"

Driven by a series of reports about potential cooperation with Taiwan Semiconductor, Intel's stock price soared this week, achieving its best weekly performance in 25 years.

Market speculation suggests that after a prolonged period of weakness, this American chip giant may be on the verge of a turnaround, but analysts remain cautious, believing that "the likelihood is low." Meanwhile, a White House official cited by Reuters also stated that the Trump administration may not support foreign companies operating Intel's factories in the U.S.

Taiwan Semiconductor Acquiring Intel Holdings? Intel "Soars on the News"

On February 14, Bloomberg cited an informed source stating that Taiwan Semiconductor is considering whether to acquire a controlling stake in Intel's factories at the request of Trump administration officials. The source indicated that Trump's team proposed the idea of an agreement between the two companies during a recent meeting with Taiwan Semiconductor representatives, and Taiwan Semiconductor is open to it.

Previously, Robert W. Baird & Co. analyst Tristan Gerra also mentioned that the U.S. government might be involved in the cooperation plan between the two companies. Gerra wrote:

"Taiwan Semiconductor may send engineers to Intel's 3nm/2nm wafer fabs to apply the company's expertise to ensure the feasibility of the fab and Intel's subsequent manufacturing projects."

As a result of this news, Intel's stock price rose 23.6% this week, marking the largest weekly increase since January 2000.

Both Bloomberg and The New York Times have confirmed this news. Additionally, according to multiple informed sources cited by Bloomberg, Biden officials have also suggested the possibility of Taiwan Semiconductor licensing its manufacturing technology for use at Intel's factories.

However, the informed sources indicated that Taiwan Semiconductor is not interested in such an arrangement that could ultimately benefit its competitors. As the largest outsourced chip manufacturing supplier, Taiwan Semiconductor serves companies like Apple, Nvidia, and Advanced Micro Devices. Analysts have pointed out that the company's advancements in manufacturing have already surpassed Intel.

Analysts: The Likelihood is Low

Regarding cooperation, although the market is optimistic about the potential collaboration, analysts express skepticism about the feasibility of the plan. Citi analyst Christopher Danely believes that "the chances of this arrangement succeeding are low."

Daniel Newman, CEO of Futurum Group, stated, "The idea of cooperation is indeed very promising, but it has not been confirmed yet. I believe many discussions are taking place, but I do not believe every rumor."

Furthermore, a White House official cited by Reuters also denied this claim, stating that the Trump administration is unlikely to support foreign entities operating Intel's factories. Analysts have also pointed out that such a deal would require significant concessions from both parties It is worth noting that as a long-term market leader in the semiconductor industry, Intel has been struggling in recent years. Especially as the industry's focus shifts to artificial intelligence accelerator chips, Intel has failed to produce viable alternatives that can compete with Nvidia, and has also lost market share to AMD and Taiwan Semiconductor.

Foreign tech media Tom's Hardware commented:

"Ongoing geopolitical turmoil, coupled with Intel's financial and execution challenges, has sparked various rumors surrounding this blue giant. In this context, significant technological and business barriers—from the differences in tool process recipes between Intel and Taiwan Semiconductor to Taiwan Semiconductor's lack of motivation to assist competitors—have raised doubts about the feasibility of this partnership."