TSMC: The Foundry Everyone Else UsesThin moat

Intel (INTC) — moat facet

TSMC makes the chips of every company taking share from Intel, and Intel said it would move its own chips there if its next factory process failed.

TSMC is Intel's competitor in the business that matters most to its future. Intel's 10-K names it as the primary competitor in leading-edge semiconductor process technology1, and TSMC manufactures for the companies taking share from Intel: AMD, Apple, Nvidia and Qualcomm. Every product they sell improves TSMC's scale.

Intel Foundry revenue, 2025 ($M)17,519From Intel307From outside customersIntel Form 10-K FY2025; internal share calculated
A foundry with one real customer.

It is also Intel's fallback. In January 2026 Intel said that if it paused Intel 14A it would expect, over time, to shift manufacturing to third-party foundries, particularly TSMC2. By the second quarter it had committed to completing 14A3, but the option remains.

The asymmetry is scale. TSMC spreads process development across many customers; Intel Foundry spreads it across one, itself, with external revenue of $307 million in 2025 against $17,826 million in total4. That is why the foundry lost $10,318 million5.

Intel's answer is geography and politics. It stresses that it is the only company conducting both leading-edge logic R&D and high-volume manufacturing in the United States6, and its 10-K lists rising tensions between mainland China and Taiwan among its risks7, a risk that falls more heavily on its rival.

Intel also competes with TSMC for the same government support. Its pitch rests on being the only company conducting both leading-edge logic R&D and high-volume manufacturing in the United States8; any leading-edge rival that builds volume manufacturing in America would weaken it. The advantage is geographic and temporary unless Intel's process is competitive on its own terms.

Intel wins against TSMC only if customers value location enough to pay for it. The proof would be a large external customer taking volume on 14A, which Intel expects to show in design commitments from the second half of 20269.

Moat trajectory: Narrowing

TSMC's scale keeps compounding; Intel's external foundry revenue is still in the hundreds of millions.

The number that tests this moat
Moat Explorer calc
Intel Foundry share of revenue from outside customers
About 1.7% (2025: $307M of $17,826M)

The foundry's distance from being a TSMC alternative; a rise to double digits would mean it is competing for business.

How it's calculated: Intel Foundry external revenue divided by total Intel Foundry revenue, from Intel's FY2025 10-K.
Source: Moat Explorer calculation from Intel filings ↗
References
  1. ReportedIntel's 10-K names it as the primary competitor in leading-edge semiconductor process technology, and TSMC manufactures for the companies taking share from Intel: AMD, Apple, Nvidia and Qualcomm.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - financial statements and notes: results, capital, government and partner transactions, restructuring and tax. — FY2025 · publ. 23 January 2026 · source ↗
  2. ReportedIn January 2026 Intel said that if it paused Intel 14A it would expect, over time, to shift manufacturing to third-party foundries, particularly TSMC.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1A risk factors and legal proceedings. — FY2025 · publ. 23 January 2026 · source ↗
  3. ReportedBy the second quarter it had committed to completing 14A, but the option remains.
    Intel Form 10-Q for the quarter ended 27 June 2026 - segments, the Ireland SCIP repurchase, escrowed shares, Intel 14A, customer deposits and debt. — Q2 2026 · publ. 24 July 2026 · source ↗
  4. ReportedTSMC spreads process development across many customers; Intel Foundry spreads it across one, itself, with external revenue of $307 million in 2025 against $17,826 million in total.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 7 MD&A and Note 3: segment revenue, operating income and drivers. — FY2025 · publ. 23 January 2026 · source ↗
  5. ReportedThat is why the foundry lost $10,318 million.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1 business: products, process technology, competition, manufacturing and customers. — FY2025 · publ. 23 January 2026 · source ↗
  6. ReportedIt stresses that it is the only company conducting both leading-edge logic R&D and high-volume manufacturing in the United States, and its 10-K lists rising tensions between mainland China and Taiwan among its risks, a risk that falls more heavily on its rival.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1A risk factors and legal proceedings. — FY2025 · publ. 23 January 2026 · source ↗
  7. ReportedIt stresses that it is the only company conducting both leading-edge logic R&D and high-volume manufacturing in the United States, and its 10-K lists rising tensions between mainland China and Taiwan among its risks, a risk that falls more heavily on its rival.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1A risk factors and legal proceedings. — FY2025 · publ. 23 January 2026 · source ↗
  8. ReportedIts pitch rests on being the only company conducting both leading-edge logic R&D and high-volume manufacturing in the United States; any leading-edge rival that builds volume manufacturing in America would weaken it.
    Intel Form 10-K for fiscal 2025 (year ended 27 December 2025) - Item 1 business: products, process technology, competition, manufacturing and customers. — FY2025 · publ. 23 January 2026 · source ↗
  9. ReportedThe proof would be a large external customer taking volume on 14A, which Intel expects to show in design commitments from the second half of 2026.
    Intel Q1 2026 earnings call prepared remarks (CEO and CFO). — Q1 2026 · publ. 23 April 2026 · source ↗
Sources
Generated September 25, 2026