The Circuit EP:127 Intel Earnings, Exploring the Possible Scenario of a TSMC Monopoly
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Jul 28, 2025 The discussion dives into the impact of a potential TSMC monopoly on the semiconductor industry, highlighting its risks to pricing and innovation. Intel's recent earnings reveal challenges in adapting to market demands while facing TSMC's dominance. There’s a call for strategic shifts in semiconductor manufacturing to revive innovation amidst financial pressures. The intricate dynamics of asset sales are explored, shedding light on TSMC's acquisitions and their effects on competitors like Intel and AMD.
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TSMC's De Facto Monopoly Status
- TSMC already functions as a de facto monopoly by controlling pricing and limiting alternatives.
- Customers pay TSMC prices despite wanting alternatives, showing industry's reliance on TSMC.
Industry's Preference for Dominant Foundries
- The semiconductor industry wants options but overwhelmingly clusters around leading players.
- This behavior resembles video market dynamics where consumers flock to dominant GPU manufacturers.
Intel's Foundry Investment Doubts
- Intel's CEO expressed unwillingness to invest in new process tech without customer commitment.
- This uncertainty threatens Intel's foundry future and industry competition.