Shares of TSMC fell 2.4% on Monday in Taipei after investors digested a report that Apple and Intel had reached a preliminary agreement for Intel to manufacture some Apple-designed chips. Analysts, however, were quick to dismiss the drop, pointing to the chipmaker’s unmatched technological lead and surging demand from AI customers.
The Deal and the Dip
The Wall Street Journal reported Friday that Apple and Intel hammered out a formal deal after more than a year of intensive negotiations, though it remains unclear which Apple products would feature Intel-made chips. The Trump administration reportedly played a role in brokering the partnership, which aligns with its push to expand domestic semiconductor production. Intel’s shares surged roughly 15% on the news, while Apple’s stock was little changed.
On Monday morning in Taipei, TSMC shares dropped to NT$2,235.00 as selling pressure mounted on the Taiwan Stock Exchange. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” said Mega International Investment Services analyst Alex Huang, noting that many investors simply seized on the news to lock in gains from TSMC’s strong recent rally.
Why Analysts Remain Bullish
Industry experts argued the deal reflects less a weakness in TSMC and more a byproduct of its dominance. Li Fang-kuo, chairman of President Capital Management, told CNA that Apple’s move was driven not by dissatisfaction with TSMC’s technology but by the capacity crunch caused by booming AI demand from customers like Nvidia.
Liu Pei-chen, an economist at the Taiwan Institute of Economic Research, told Focus Taiwan that TSMC’s proprietary advanced packaging technologies — including InFO and CoWoS — remain critical to the performance of Apple’s A-series and M-series chips and that competitors struggle to match them. She added that both Intel and Samsung continue to lag in chip yields and power efficiency, making it difficult for Apple to shift flagship chip orders away from TSMC in the near term.
TSMC’s Structural Advantages
TSMC began mass production of its 2-nanometer chips in late 2025, making it the only foundry capable of delivering the technology at high volumes. The company plans to expand 2nm capacity to 100,000 wafers per month in 2026 across multiple fabs. Wall Street remains broadly bullish on the stock, with a consensus “Buy” rating.
Prior reporting suggested that Intel would likely use its upcoming 18A-P node for Apple chips, which may not be ready to scale until next year at the earliest. Until then, analysts say TSMC’s entrenched position — built on years of deep collaboration with Apple, stable yields, and an expanding advanced packaging roadmap — leaves little room for rivals to displace it as the iPhone maker’s primary foundry partner.
