Taiwan Semi Founder Calls For New Strategy After Intel Chief's Departure

Core Insights - Morris Chang, founder of Taiwan Semiconductor Manufacturing Co (TSMC), criticized Intel for not focusing on developing its artificial intelligence capabilities instead of contract chipmaking [1][2] - Intel's stock has dropped 58% year-to-date, while TSMC's stock has surged over 89% in the same period [3][4] - Following the departure of Intel's CEO Pat Gelsinger, S&P Global Ratings downgraded Intel's credit rating from 'BBB+' to 'BBB' due to weak business recovery and uncertainty [4][5] Company Strategy - Chang emphasized the need for a new strategy and leadership at Intel, suggesting that the company lost significant contracts while pursuing ambitious manufacturing and AI goals [2][3] - Intel's interim co-CEO David Zinsner indicated that the next CEO should possess strong manufacturing and product skills [8] Market Reactions - Analysts from Truist Securities and Benchmark recommended selling Intel or parts of it, highlighting the potential loss of $7.8 billion in U.S. chip subsidies due to the company's focus on separating its manufacturing and products businesses [7] - Intel's client computing segment is expected to see growth after a modest recovery in 2025, supported by a PC refresh cycle and its Data Center and AI segments [6] Investment Opportunities - Investors can gain exposure to Intel through ETFs such as First Trust Nasdaq Semiconductor ETF (FTXL) and REX FANG & Innovation Equity Premium Income ETF (FEPI) [8]