Intel CFO: “We Will Use TSMC Forever” as US Funding Fuels Debt Repayment and Shares Climb

Intel’s Chief Financial Officer David Zinsner has confirmed that the company will continue to rely on Taiwan Semiconductor Manufacturing Company (TSMC) for the foreseeable future, signaling a major commitment to the world’s leading foundry despite Intel’s ongoing ambitions to expand its own silicon fabrication capabilities. This announcement arrives as investor confidence in Intel surges, following news that the company plans to use significant US government funding to help pay down its corporate debt.

Ongoing Partnership with TSMC

During recent statements, Zinsner addressed persistent questions about Intel’s dependency on external foundry partners. He made it clear that “Intel will use TSMC basically forever,” highlighting the strategic benefits of maintaining access to cutting-edge fabs for advanced chip designs even as Intel develops its own foundry business. Currently, around 30% of Intel’s chip supply is produced by TSMC, a percentage expected to gradually decline as Intel’s in-house manufacturing matures, but not disappear entirely.

Using US Government Funding for Debt Repayment

Intel also detailed its plans for newly secured funding from the US government, stemming mainly from the CHIPS Act and the recently established ‘Safe Haven’ program. Zinsner explained that Intel intends to prioritize debt repayment, aiming to settle all debts maturing by the end of 2025 and, ideally, avoid further borrowing. The US government’s investment, which will see it take a 10% ownership stake in Intel, is designed to strengthen domestic chip manufacturing and reduce reliance on foreign supply chains—yet Zinsner clarified that the government would not interfere with Intel’s operational decisions.

Additional Sources of Capital

Alongside government support, Intel is also finalizing the sale of its Altera chip design unit, a move expected to net the company $3.5 billion. Further investments from parties like SoftBank are anticipated by the end of this quarter, subject to regulatory approval. Collectively, these financial maneuvers are intended to stabilize Intel’s balance sheet and create room for targeted investment in next-generation semiconductor R&D.

Risks, Controversies, and Strategic Implications

Analysts and industry observers remain cautiously optimistic. While public funding and cross-border partnerships provide Intel with much-needed capital and flexibility, some critics see it as risky, voicing concerns about “cronyism” and potential national security implications. Intel’s leadership, however, maintains that diversified supply, continued access to TSMC’s advanced production technologies, and robust capitalization are essential for future competitiveness, especially as the company seeks to close the gap in AI and high-performance computing.