On one hand, we have Taiwan’s TSMC wooing the U.S with high-tech courtship and promises of jobs in Arizona. On the other hand, Intel is investing shocking amounts just to get back on top. There is not just chips at stake here, but world technology dominance, and all are playing hard. After being publicly endorsed by the Trump administration, TSMC finds itself on the latest wave of political and market optimism. The world’s largest contract chipmaker is full steam ahead with its $165 billion investment plan in the United States, publicly marked by the launch of its third chip fabrication facility in Arizona.

On the visit, Secretary of Commerce Howard Lutnick commended the company for its commitment to American manufacturing. Lutnick said,

“We are at TSMC Arizona to celebrate the return of American manufacturing. President Trump’s bold leadership and clear direction are driving companies and jobs back to this country at a record pace.”

The statement and the administration’s approval, seems to be intended to protect TSMC from potential U.S tariffs on semiconductors made in Taiwan, an implicit warning that Trump had echoed before.

Although TSMC’s American depositary receipts were up 1.5% in premarket trade on Wednesday, they are down 17% so far this year. Supporting political winds and TSMC’s enhanced operations in the U.S are providing a strategy in the face of China related geopolitical tensions.

Intel Race to Catch up

Intel adopted an approach that was a mixture of threat and motivation towards TSMC, as a domestic manufacturing rival could effectively bar Intel from lucrative contracts unless Intel re-establishes the technological lead. In essence, Intel wants to announce its 18A process before the end of this year and roll out the 14A process by 2027. Some of the clients, like Nvidia and Broadcom, are testing the new technology. Intel is backing its own operations for research and development and wafer production in the entire range in the United States, thereby emphasizing a “Made in America” strategy, unlike TSMC.

CEO Lip-Bu Tan said,

“Intel is committed to building a world-class foundry that serves the growing need for leading-edge process technology, advanced packaging and manufacturing.”

He highlighted that the company is pushing for leadership in advanced packaging and fabrication.

Intel acquired two High Numerical Aperture Extreme Ultraviolet (High NA EUV) lithography systems from ASML for more than $398 million each. These are the most advanced commercially available chip making tools to exist. TSMC has refrained from such investment for fear of being a high-cost equipment and thus has opened a window for Intel to possibly advance ahead.

Shifting Semiconductor Landscape

TSMC’s U.S expansion has changed the semiconductor landscape, prompting cheers from the White House and stealthy glances from competitors. Intel, on its part, is heavily investing in next-gen tools and in-house innovation to try to regain relevance.

With chips, if performance does not somehow persuade customers to flow away from TSMC’s ecosystem, then Intel’s high-risk, high-cost bet has little chance of success. For now, both companies are locked in a geopolitical and technological tit-for-tat that is altering the world supply chain, including the future of American manufacturing.