TSMC, the world’s largest contract chip manufacturer, announced a $100 billion investment in the United States, causing Intel Corporation’s stock to plummet by over 6%.
On Tuesday, Intel’s shares tumbled 6.20% to $21.33 on the New York Stock Exchange.
Intel had previously considered selling its foundry division to TSMC. However, with TSMC’s substantial U.S. investment, Intel no longer has the financial capacity to acquire TSMC’s foundry operations.
Last month, Intel’s stock rallied on speculation that TSMC might acquire its foundry operations. However, with TSMC now planning to establish its foundry facilities in the U.S., the need to acquire Intel has diminished, contributing to Intel’s stock decline.
TSMC announced the investment on Monday, followed by a White House press conference featuring President Donald Trump, TSMC Chairman and CEO C.C. Wei, and U.S. Commerce Secretary Gina Raimondo. Trump stated that TSMC has committed to investing $100 billion in new capital to construct cutting-edge semiconductor manufacturing facilities in the United States.