Chip Manufacturing Update: TSMC vs. Intel
Taiwan Semiconductor Manufacturing (TSMC) remains the leading semiconductor foundry, anticipated to increase its prices for 2nm technology, projected to be 50% higher than current offerings. The company is positioned to benefit from a growing demand for AI chips, expected to rise by over 40% compound annual growth rate (CAGR) in the coming years. In contrast, Intel’s stock outperformed in 2025 with an 80% gain, largely due to significant investments from Nvidia ($5 billion), SoftBank ($2 billion), and the U.S. government ($8.9 billion).
As of Q3 2025, Intel reported a 3% revenue increase but faced pressure on gross margins, climbing from 18% a year prior to 40%. The company is focusing on building its foundry capabilities and collaborating with Nvidia for advanced chip integration. Industry analysts see TSMC having a clearer growth trajectory than Intel for 2026, given its robust technological lead and operational efficiency.
