[News] TSMC Welcomes Intel’s EMIB for More Market Flexibility; CEO Jokes About Memory Makers’ Margin Boom
As market speculation grows that Intel and Samsung Electronics could benefit from TSMC’s capacity constraints by capturing spillover demand, TSMC Chairman C.C. Wei addressed the trend at today’s earnings call. He noted that the company’s packaging capacity is so tight that it is now limiting customers’ growth, adding that TSMC welcomes “additional flexibility in the market.”
As noted by Wccftech, Intel’s EMIB advanced packaging technology is reportedly gaining traction among major AI chip players, with potential customers including NVIDIA’s Feynman GPU, Google’s TPU HumuFish, and Amazon’s AWS Trainium 3.
However, Wei emphasized that a more diversified advanced packaging landscape could ultimately benefit TSMC as well by supporting growth in its front-end wafer business. He said Intel’s technology “looks good” and hoped the company can successfully scale up to help ease industry-wide capacity pressure, as TSMC continues working to close the gap between demand and supply. More options in the market, he added, would give customers greater flexibility.
TSMC’s Edge: Technology, Manufacturing, and Customer Trust
While welcoming more capacity flexibility in the market, Wei cautioned that building competitive semiconductor capabilities takes time. “Choosing a technology and ramping it up is not like buying a bottle of milk from 7-Eleven,” he said, emphasizing that there are no shortcuts in the semiconductor industry and success ultimately comes down to fundamentals.
Wei added that TSMC’s edge lies in three key pillars: technology, manufacturing excellence, and customer trust — factors he believes remain critical as competition intensifies.
“Jealous” of Memory Makers’ Soaring Margins, but Stresses Partnership
Interestingly, when asked about soaring memory prices and TSMC’s own pricing strategy, Wei jokingly said he was “jealous” of memory companies’ 86% gross margins. However, he emphasized that TSMC views itself as a long-term partner to customers, adding that the company wants its partners to succeed rather than squeeze them out of the market.
Wei added that TSMC does not intend to sharply raise prices by “4x or 5x,” joking that such a move would make it impossible for customers to survive. Instead, TSMC focuses on creating value and maintaining a healthy gross margin to support long-term expansion — a strategy Wei said benefits both TSMC and its customers. “That’s our philosophy,” he said.
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(Photo credit: TSMC)
