Intel CEO Patrick Gelsinger today outlined the company’s intentions to become a major contract manufacturer using advanced manufacturing processes for the production of third-party chips. This initiative did not frighten not only representatives of the Taiwanese government, but also some industry analysts. According to the former, TSMC’s leadership is not in danger.

It must be admitted that TSMC’s share price after the speech of the head of Intel fell by 3,9%, so it cannot be argued that the market did not perceive the threat from the American manufacturer at all. Recall, TSMC has committed itself to build an enterprise in Arizona by 2024, which will produce 5-nm components. The Taiwanese company now intends to outstrip not only Samsung Electronics with its Texas project, but also Intel, which will build two new factories in Arizona by 2024 that will be able to serve third-party customers.

According to Reuters, the Minister of Economy of Taiwan Wang Mei-hua has already stated that Intel’s initiative with its second attempt to enter the contract manufacturing market in its history does not pose significant threats to the island’s economy. First, according to the official, Taiwan’s semiconductor industry ecosystem is generally in good shape. Second, she said, Taiwanese manufacturers are constantly improving their technology. The Minister welcomes any initiatives for cooperation with the United States and hopes to increase investment in the national semiconductor industry.

The experts also differed in their assessments of this Intel initiative. Representatives of Fubon Securities Investment Services recalled that Intel’s previous attempt to become a contract manufacturer was not particularly successful: it eventually bought Altera, and the production of LG mobile processors was never established at Intel’s facilities. There is nothing new in the current plan of the corporation, according to analysts. According to them, Gelsinger is living in a bygone era, and it will be extremely difficult for Intel to catch up with TSMC in manufacturing capabilities.

Raymond James experts are expressing concerns of a different nature – in their opinion, it will be difficult for Intel to attract customers for contract manufacturing of components. The technology gap between Intel and competitors is still too large to motivate customers to renegotiate their contracts with the company’s rivals. Bloomberg Intelligence analysts do not believe that Intel will be able to lure Apple and Qualcomm into its pipeline, since all three companies are competing with each other. Again, Mega International Investment Services are convinced that as soon as Intel’s new ventures begin delivering products to customers, TSMC will immediately feel the competitive pressure. Meanwhile, the almost XNUMX% rise in Intel shares in preliminary trading today gave way to XNUMX%.