[hardware2win]

The far ahead argument is something I read weekly on investing boards

Some claim tsmc is decade ahead, other say it is 3 to 5 years, etc, etc.

From my understanding both are in a race that will be decided in next 10-14 months and when it comes to the future, Intel has priority on next gen EUV (HighNA), so there is a chance

Various medias report that Intel has 1-2 year advantage due on tech like PowerVia

So, it is not that clear how far ahead TSMC is

_____

>TSMC isnt stupid

Yes, they arent, so arent their customers who want geo diversified supply chain and risk amortization (Earthquake? War? Drought?)

Also they will have leverage when negotiating deals with TSMC

[sanxiyn]

I am somewhat skeptical about high-NA EUV. There are reasons why Intel got priority on that: ASML marketing materials themselves imply high-NA EUV is worse than low-NA EUV in terms of cost.

https://www.semianalysis.com/p/asml-dilemma-high-na-euv-is-w...

[j_walter]

> Also they will have leverage when negotiating deals with TSMC

Except Intel hasn't talked about price at all...they have a completely different cost structure that isn't competitive at all. Think about AMD gross margin vs. Intel's gross margin. AMD has similar...all while giving TSMC 50%+ gross margin also. Now tell me Intel's cost will be similar to TSMC...

[Wytwwww]

Their foundry business is a tiny fraction of their revenue at this point and I'm not sure their overall gross margin is particularly relevant here (also Intel has lower gross margins than AMD or TSMC these days?)

[j_walter]

If they can't make good gross margin when making their own products that are higher priced (than similar AMD products)...how are they going to do it when they have to support an end customer that expects high gross margins?

Intel GM ~46% AMD GM ~46% TSMC GM ~53%