Market Shake-Up: Taiwan Semiconductor Surges Amid Intel CEO’s Departure
The semiconductor industry is abuzz with news of Intel CEO Pat Gelsinger’s sudden retirement, and Taiwan Semiconductor (NYSE: TSM) is reaping the benefits. Despite no company-specific news, TSMC shares soared 5.2% as of 1:10 p.m. ET, while Intel stock gained 3.5% during the same period.
A Setback for Intel’s Foundry Strategy
Gelsinger’s departure marks a significant blow to Intel’s ambitions in the foundry business. His vision was to transform Intel into a major player in contract chip manufacturing, rivaling TSMC’s dominance. However, with Gelsinger gone, the future of Intel Foundry Services is uncertain. Any delays or changes in its plans will likely benefit TSMC, which already commands over 50% of the third-party chip manufacturing market and a staggering 90% of advanced chip manufacturing.
A Threat Subsides
Intel’s foundry business has been hemorrhaging billions of dollars each quarter, and it’s unclear if the next CEO will prioritize this area. TSMC, on the other hand, can breathe a sigh of relief as the threat from Intel has diminished. The company’s leadership structure remains unchanged, according to Intel’s press release, but the uncertainty surrounding its foundry business is a welcome development for TSMC.
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