Former TSMC Co-COO Says Intel Is Now a “Nobody,” Urges Focus on Mature Chip Manufacturing or Merger
In a recent event held in Taiwan, Chiang Shang-yi, the former Co-Chief Operating Officer of Taiwan Semiconductor Manufacturing Company (TSMC), issued a blunt assessment of Intel Corporation’s current standing within the global semiconductor industry. Speaking at a book launch, Chiang stated that Intel, once considered the undisputed leader in semiconductor manufacturing, is now a “nobody” in the field, urging the American tech giant to pivot its strategy towards mature chip process nodes or seek a strategic merger to remain competitive.
A Veteran’s Perspective on the Shift in Semiconductor Leadership
Chiang, who played a pivotal role in TSMC’s rise to prominence during his tenure, reflected on a time when Intel’s technological dominance was unchallenged. However, he emphasized that the balance of power has dramatically shifted, and Intel now lags significantly behind TSMC, especially in the realm of leading-edge process nodes.
“Intel used to be the king of semiconductors. Today, it is a nobody,”
Chiang stated candidly during the event, as reported by UDN.
According to Chiang, the disparity between Intel and TSMC has grown so significant that he sees little value in Intel continuing to pursue head-to-head competition in advanced manufacturing. Instead, he recommended that Intel focus its efforts on mature chip manufacturing technologies, which, while less advanced than bleeding-edge nodes, remain essential across various industries and offer greater volume and reliability.
Strategic Mergers as a Viable Path Forward
Chiang went on to suggest that Intel would benefit from merging with an existing mature-node foundry, naming no specific companies but implying that firms such as United Microelectronics Corporation (UMC) and GlobalFoundries fit the criteria. Both companies specialize in high-volume production of chips using mature process nodes and are considered strong players in their respective segments.
“Intel should merge with a firm that focuses on high-volume mature process chips. Competing directly with TSMC in advanced nodes is no longer viable,” Chiang added.
TSMC's Competitive Edge Lies in Scale and R&D
One of the key takeaways from Chiang’s remarks is his emphasis on TSMC’s core strengths: a vast and diverse client base, rapid turnaround, and scale of manufacturing. He highlighted how TSMC’s success was built upon its ability to produce chips quickly and reliably for hundreds of customers, which has become a cornerstone of its global dominance.
Additionally, Chiang credited TSMC’s commitment to self-reliant research and development as a decisive factor in its rise. He contrasted this with UMC’s historical dependence on external collaborations, such as with IBM, noting that TSMC built its capabilities independently—particularly in the development of leading-edge technologies.
“During my time at TSMC, we worked hard to overcome Intel’s lead. It brings me satisfaction to see the company surpass them, driven by internal innovation,” Chiang reflected, as reported in
Intel’s Current Direction Under CEO Lip-Bu Tan
Chiang’s remarks come at a time of strategic transformation for Intel. Under new CEO Lip-Bu Tan, the company is preparing for the commercial rollout of its 18A process node, which includes the debut of Panther Lake in 2025 and Clearwater Forest in 2026. These products mark Intel’s most ambitious attempt yet to regain manufacturing leadership and align its capabilities with TSMC’s forthcoming 2nm node.
However, Chiang remains skeptical about Intel’s prospects in high-end nodes, citing its lagging customer scale, inflexible business model, and operational inefficiencies compared to TSMC. He argues that pivoting to mature process technologies or acquiring a company in that domain might provide Intel with a more stable and profitable future.
A Cautionary Outlook on Market Competition
Chiang concluded by noting that TSMC’s ability to serve a global customer base with speed, scale, and consistent innovation continues to set it apart. He underscored the importance of tailored manufacturing strategies, suggesting that without a fundamental shift in approach, Intel’s ambitions in the contract manufacturing space may remain out of reach.
While Intel forges ahead under new leadership with bold aspirations to re-establish its foundry business and advanced node parity, the former TSMC executive’s candid assessment serves as a sobering reminder of the realities of modern semiconductor competition, where customer diversity, manufacturing scalability, and R&D depth define long-term leadership.
