Intel has been on a wild ride lately. In February 2025, the company’s stock shot up nearly 28%, despite the fact that it still doesn’t have a permanent CEO after Pat Gelsinger’s sudden retirement in December 2024. This kind of surge is surprising, especially since Intel has been struggling to keep up with its competitors.
TSMC’s Big Bet on the U.S.
Meanwhile, TSMC, the world’s biggest chipmaker, has been on the move. In December 2022, TSMC said it would invest $40 billion in Arizona to build two advanced chip factories. The plants will make some of the latest semiconductors, with one focusing on 5-nanometer chips and the other on 3-nanometer technology.
This is a big deal because TSMC has traditionally done all of its manufacturing in Taiwan. By expanding in the U. S., it’s not only growing its business, but hedging its bets against geopolitical tensions in Asia.
Challenges on the Road to Expansion
Building cutting-edge factories in the U.S. hasn’t been smooth sailing for TSMC. Construction costs are higher than expected, and there’s a shortage of skilled workers, which has caused delays. Originally, the first Arizona plant was supposed to start producing chips in 2024, but now it’s been pushed to 2025. The second factory, which will make the even more advanced 3-nanometer chips, might not be up and running until 2027 or 2028.
What This Means for the Chip Industry
With TSMC setting up in the U.S., the semiconductor industry is in the middle of a big shake-up. The company’s move aligns with Washington’s push to bring more chip production stateside, especially with the CHIPS and Science Act offering incentives to manufacturers.
But this also means Intel has a tougher road ahead. For years, it’s been the face of American chipmaking, but with TSMC now building high-end chips close to major customers like Apple and NVIDIA, Intel is under pressure to step up its game. This kind of competition could push the industry to develop even more powerful and efficient technology, which ultimately benefits consumers.
What’s Next?
Intel’s recent stock swings reflect a company facing both internal struggles and external pressure. Between leadership uncertainty and increasing competition, the next few years will be critical for the company. The semiconductor world is moving fast, and Intel will have to innovate aggressively if it wants to stay on top.
