Intel’s stock reached an all-time high on Thursday following a social media statement by President Donald Trump indicating Apple’s agreement to collaborate on chip design and manufacturing in the U.S. This development highlights Intel’s foundry comeback, which has seen its stock surge over 500% in the past year. The renewed interest in Intel’s manufacturing capabilities prompts questions about the long-standing market leadership of Taiwan Semiconductor Manufacturing (TSMC).
After nearly a decade of lagging in manufacturing technology, Intel has shifted its strategy to become a contract chipmaker for external clients, moving beyond its traditional role of producing chips solely for internal use. The 18A process, which began high-volume production last October, is central to this effort. Intel’s first laptop chip using 18A, Panther Lake, launched early this year, followed by a server chip in the spring. The company has also announced a collaboration with Nvidia and a multi-billion-dollar agreement to produce custom artificial intelligence (AI) chips for Amazon, in addition to the reported Apple arrangement, which neither company has confirmed.
Despite this momentum, Intel’s foundry segment reported $5.4 billion in first-quarter revenue, a 16% increase year-over-year. However, only $174 million of this revenue came from outside customers, with the majority representing chips built by Intel for its own products. The segment also recorded a $2.4 billion operating loss during the same period. CEO Lip-Bu Tan anticipates early design commitments from external customers in the second half of 2026.
Taiwan Semiconductor Manufacturing continues to build chips for a significant portion of the industry, including major players like Nvidia and Apple. Its operational scale remains unmatched by competitors. TSMC controls approximately 70% of the pure-play foundry market and over 90% of the world’s leading-edge production. This leading-edge production involves the advanced nodes required for the most sophisticated AI and smartphone chips, precisely the segment Intel aims to penetrate.
TSMC’s first-quarter revenue increased by about 41% year-over-year, reaching $35.9 billion. The company reported a gross margin of 66.2% and an operating margin of approximately 58%. Demand for TSMC’s manufacturing capacity consistently exceeds its current production capabilities, indicating sustained strength in its core business.
The long-term implications of Intel’s foundry expansion on TSMC’s market share remain uncertain. While Intel has demonstrated progress in its manufacturing technology and secured high-profile collaborations, the financial performance of its foundry segment still relies heavily on internal production and faces significant operating losses. The timeline for Intel to achieve substantial external customer revenue and profitability in its foundry business is a key factor to monitor.
Observers will watch how Intel’s 18A process adoption progresses among external clients and whether its reported collaborations translate into significant revenue contributions. The ability of TSMC to maintain its technological lead and expand capacity to meet persistent demand will also be crucial in determining the future competitive landscape of advanced chip manufacturing.