TSMC Remains Kingpin in Chip Manufacturing as NVIDIA-Intel Collaboration Grows

Citi analysts have indicated that despite the burgeoning collaboration between NVIDIA and Intel, TSMC is expected to maintain its position as the primary foundry partner for both tech giants. NVIDIA has confirmed that TSMC is currently engaged in the production of six new chips based on its upcoming Rubin architecture, signaling an ongoing reliance on TSMC's manufacturing prowess. Analysts from Citi forecast that any potential NVIDIA-Intel joint developments will continue to lean on TSMC's advanced technology over the next few years.

The projections suggest a significant increase in TSMC's revenue streams from these partnerships, with expectations of a 50% growth in income from NVIDIA and a 20% hike from Intel by 2026. The analysts emphasize TSMC's entrenched leadership within the semiconductor foundry space and its strategic investments in the Arizona wafer plant, which underline its commitment to servicing American clientele effectively.

Despite the recent announcement of NVIDIA's $5 billion investment into Intel, aimed at joint chip development for PCs and data centers, experts believe that TSMC's dominance in the field of advanced processes will likely remain unchallenged in the foreseeable future. Such alliances and financial maneuvers are intricately shaping the competitive landscape, but the essence of technological superiority—especially for AI chips demanding leading-edge processes—keeps TSMC in a pivotal position.

Ultimately, while the new alliances in the chip industry signal potential market share redistributions, especially in sectors involving competitors like AMD and Broadcom, the fundamental nature of TSMC's partnerships with NVIDIA and Intel appears to remain stable. With these tech behemoths projected to continue as key clients, TSMC's revenue from older, less sophisticated product lines is relatively minor, ensuring that any inherent risks are manageable and its market leadership firmly anchored.