Morris Chang, the longtime leader of Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), once pointed back to Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang's famous analogy to explain why Intel Corp (NASDAQ:INTC) faces an uphill climb in its push to become a world-class chip foundry.
TSMC's Partnership Model Sets It Apart
In 2023, speaking at a semiconductor forum hosted by CommonWealth magazine, Chang revisited Huang's description of the divide between the companies.
He recalled that Huang once said TSMC had learned to "dance with 400 partners," a reference to its vast ecosystem of customers and collaborators, while "Intel has always danced alone."
Chang indicated that the remark still captures the heart of the industry's competitive gap.
The Missed Opportunity That Let TSMC Surpass Intel
In a 2014 Stanford lecture, Chang recounted how Intel and several other tech giants passed on his pitch to co-invest in what would become the world's leading chip foundry.
In the late 1980s, Chang needed to secure half of TSMC's initial funding from private investors after the Taiwanese government agreed to cover the other half.
He approached Intel, Toshiba, Hitachi and Sony and although Intel's then-executive Craig Barrett met with him twice, the company ultimately declined.
Philips was the only firm that showed genuine interest, Chang said and eventually contributed 28%. The Taiwanese government provided 48% and local investors supplied the rest — enabling TSMC's launch in 1987.
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TSMC Widens Its Lead Over Intel With $1.16 Trillion Market Cap
Today, the gap between TSMC and Intel could not be more pronounced.
As of November 2025, TSMC's market value has surged to about $1.16 trillion, placing it among the world's top 10 most valuable companies. Intel, meanwhile, trails significantly with a market cap of roughly $175.39 billion, ranking 96th globally.
TSMC, which debuted on U.S. markets as an ADR in 1997, now commands more than 60% of the global chip foundry sector.
The company manufactures chips for major clients such as Apple Inc. (NASDAQ:AAPL), Advanced Micro Devices, Inc. (NASDAQ:AMD) and Nvidia, powered by its cutting-edge process technologies and the rise of the fabless model that has transformed the semiconductor industry.
Intel, by contrast, has struggled to reclaim its past leadership. Over the last five years, Intel's shares have dropped more than 22%, while TSMC's stock has surged nearly 194%.
Last month, Intel posted third-quarter revenue of $13.65 billion, topping analysts' expectations of $13.14 billion. Its Intel Foundry unit generated $4.2 billion, a 2% decline from the prior year.
Benzinga's Edge Stock Rankings show that TSMC continues to exhibit a strong medium and long-term price trend, though its short-term trend has turned negative. Click here to see how the company compares with its industry peers.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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