Intel rivals Taiwan Semiconductor Manufacturing Co and Broadcom are reportedly exploring potential deals that could split the storied American chip giant.

Trump is against using tax credits to encourage chip production in the U.S., but semiconductor makers don't seem to mind.

Critics say that TSMC's move to invest more in the U.S. will lead to the reduction of Taiwan's strategic importance on the global stage.

It's not entirely clear if the new investment is entirely distinct from the $65 billion TSMC has already said it plans to invest in the US. But at minimum, it's a significant scaling up of that commitment.

TSMC's announcement comes as chip-maker Intel, which has struggled for years with declining sales and lost market share, has been seeking customers for its own factories in the US.

TSMC's revenue surges 39% in 2025, driven by AI chip demand, amid uncertainties over US tariffs and investments.

The investment will go into building three new fabrication plants in Phoenix, Arizona, as well as two packaging facilities and a research center.

Uncertainty about the impact of new U.S. tariffs weighed on stocks, along with worries about tightening chip export curbs, and competition from China as Alibaba unveiled its latest AI reasoning model, which it said rivals offerings from DeepSeek and ChatGPT maker OpenAI. Alibaba shares climbed about 1%.

Taiwan-based TSMC fabricates the vast majority of the advanced chips for AI and smartphones. Now more of that fabrication could move to Arizona.

The report also claims that AMD is "evaluating whether Intel's 18A manufacturing process is suitable for its needs" though it's not clear if AMD has sent any designs through for testing. If it does and then goes on to use Intel Foundry to make some of its products, then this will surely be a first for the CPU industry.

Intel could sell its foundry and chip design segments to TSMC and Broadcom. TSMC would extend its lead as the world’s largest contract chipmaker. Broadcom would further expand its diversified ...

As TSMC's capacities are fully booked through late 2027, its customers asked for more capacity in the U.S., says C.C. Wei.