TSMC chief executive C.C. Wei just told Intel Foundry what many in the semiconductor industry have been thinking: throwing billions at chip manufacturing won’t automatically make you competitive. The blunt assessment came as Taiwan’s chip giant posted blockbuster earnings that explain why it’s not exactly shaking in its boots.The world’s largest contract chipmaker reported fourth-quarter net profit of NT$505.74 billion ($16 billion), up 35% from last year and well above analyst expectations. Revenue climbed to NT$1.046 trillion for the quarter, pushing the full-year total to NT$3.809 trillion. These aren’t just good numbers—they’re a statement about who still runs the advanced chip game.Wei’s pointed comments weren’t unprovoked. Intel Foundry has been making noise lately, securing $8.9 billion from the Trump administration and drawing commitments from Nvidia and SoftBank. The company’s 18A process technology has shown real progress, successfully producing Panther Lake chips and reportedly catching the eye of Apple, Nvidia, AMD, and Qualcomm for potential future orders.
Why TSMC believes it has the edge over rivals
But Wei argues capital is just the entry fee, not the competitive advantage. “In the development of semiconductor technology to this point, receiving investment has not helped to improve competitiveness,” he told reporters during the earnings call, according to UDN. He pointed instead to the unglamorous realities: perfecting production lines, certifying partner designs, building capacity at scale.TSMC has spent 37 years figuring out these details. That institutional knowledge can’t be purchased overnight, no matter how deep the pockets. Wei said he’s “confident” TSMC will maintain its growth targets despite competition, and frankly, the numbers suggest he’s earned that confidence.
Capacity crunch opens doors for Intel and Samsung
The irony is that TSMC’s dominance has created its own problem. The Information reports that TSMC has told both Nvidia and Broadcom it simply can’t provide all the production capacity they’re demanding. When the world’s premier chipmaker starts turning away customers, it opens a window for Intel and Samsung to grab the overflow.TSMC isn’t ignoring the threat, though. The company plans to pour up to $56 billion into expansion this year, including ramping up 3nm production at its Arizona facility nearly a year ahead of schedule. Demand for its 3nm and 5nm technologies remains fierce, driven by the AI chip frenzy that shows no signs of cooling. Management expects 2026 revenue to jump 30% year-over-year.Wedbush analysts cheered the results, noting TSMC trades at a 30% discount to their price target despite “firing on all cylinders.” They see competitive threats as still “years away.”Wei’s message is clear: TSMC has thrived in a competitive environment for three decades and isn’t about to cede ground just because Intel got a big check. Whether that confidence holds up as Intel’s technology improves remains the semiconductor industry’s most interesting question of 2026.
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