For Asian chip giants like TSMC and Samsung, Nvidia’s $5 billion investment in Intel is both a relief and a potential threat. The deal, announced Thursday, gives Nvidia roughly a 4% stake in Intel and includes plans to co-develop PC and data center chips. Following the news, Intel shares surged 23%.
Analysts suggest Intel’s revival could ease U.S. reliance on TSMC, which currently dominates advanced chip manufacturing for American firms. Luke Lin of DIGITIMES noted, “Intel’s survival offers Washington another company to back, reducing pressure on TSMC.”
However, long-term risks remain. If Intel successfully expands its foundry capacity—a move strongly encouraged by U.S. officials on national security grounds—it could challenge TSMC’s dominance in advanced nodes and even persuade Nvidia to shift some production away from Asia.
TSMC and Samsung shares slipped 1.6% and 1%, respectively, after the announcement. Analysts added that AMD may be the near-term loser, as Nvidia could rely on Intel to compete in the data center market, potentially reducing AMD’s orders with TSMC.
While the deal strengthens Intel’s survival outlook, experts caution it will take years before Intel can realistically match TSMC’s scale in cutting-edge manufacturing.
