$Intel(INTC)$ US fabless chipm

$Intel(INTC)$ US fabless chipmakers should actually welcome Intel's progress in advanced chip manufacturing rather than dismiss it. Intel's yields have already passed Samsung and are getting close to TSMC at around 90%. It is no secret that fabless chipmakers enjoy unmatched profit margins partly because they carry minimal equipment burdens. But imagine what the situation would look like if Intel exited advanced chip fabrication entirely. TSMC is already dealing with capacity constraints and needs to keep investing to expand. TSMC customers have strong margins in part because TSMC does not charge enough for manufacturing. Look at what Micron did when memory demand picked up, prices went through the roof. Demand for TSMC has also risen, yet prices have not moved the same way, and that is because Intel is still around as an alternative, keeping pricing artificially low. There is only one side that truly benefits from pushing Intel down, and that is TSMC, Taiwan, and possibly China.

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