# Episode 30: Intel / Tower Semi Deal, Capacity Challenges, and Leading Edge $$$

- Show: [The Circuit](https://hardwarepodcasts.com/podcast/the-circuit)
- Published: 2023-08-21
- Length: 34m
- Episode: 32
- Page: https://hardwarepodcasts.com/podcast/the-circuit/2023-08-21-episode-30-intel-tower-semi-deal-capacity-challenges-and-leading-edge
- Listen: https://share.transistor.fm/s/0e0add80

## Summary

Ben Bajarin and Jay Goldberg discuss the collapse of Intel's $5 billion acquisition of Tower Semiconductor, attributing the failure to Chinese regulatory blockage driven by geopolitical tensions rather than antitrust concerns. They analyze Intel's strategic need for trailing-edge capacity and external customer service capabilities to compete with TSMC in its Intel Foundry Services (IFS) division. The hosts explore the broader semiconductor landscape, highlighting China's dominance in trailing-edge capacity and the massive economic opportunity for TSMC competitors in the leading-edge market, estimated at $40 billion.

## Chapters

- [0:22](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-21-episode-30-intel-tower-semi-deal-capacity-challenges-and-leading-edge#t=22) Intel and Tower Semiconductor Deal Collapse
- [1:53](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-21-episode-30-intel-tower-semi-deal-capacity-challenges-and-leading-edge#t=113) Strategic Rationale and Cultural Challenges
- [10:01](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-21-episode-30-intel-tower-semi-deal-capacity-challenges-and-leading-edge#t=601) Geopolitical Blockage and M&A Trends
- [16:38](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-21-episode-30-intel-tower-semi-deal-capacity-challenges-and-leading-edge#t=998) China's Trailing-Edge Capacity Dominance
- [20:50](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-21-episode-30-intel-tower-semi-deal-capacity-challenges-and-leading-edge#t=1250) Leading-Edge Market Opportunity and Jevons Paradox
- [28:40](https://hardwarepodcasts.com/podcast/the-circuit/2023-08-21-episode-30-intel-tower-semi-deal-capacity-challenges-and-leading-edge#t=1720) Foundry Competition: Samsung vs. Intel

## Topics

- [Policy, trade & tariffs](https://hardwarepodcasts.com/topic/policy-trade-and-tariffs)
- [Scaling production](https://hardwarepodcasts.com/topic/scaling-production)
- [Growth, exits & acquisitions](https://hardwarepodcasts.com/topic/growth-exits-and-acquisitions)
- [Sourcing & supply chain](https://hardwarepodcasts.com/topic/sourcing-and-supply-chain)

## Most relevant to

large enterprises

## Mentioned

- Intel (company)
- Tower Semiconductor (company)
- TSMC (company)
- Samsung (company)
- Nvidia (company)
- Qualcomm (company)
- GlobalFoundries (company)
- ARM (company)
- Synopsys (company)
- MaxLinear (company)
- Silicon Motion (company)
- Intel Foundry Services (product)
- Nvidia GPUs (product)

## Related episodes from other shows

- [ON Semi’s Acquisition | TSMC’s Finer Nodes | Tesla’s AI Chip | China’s Fabless Companies](https://hardwarepodcasts.com/podcast/ee-times-current/2019-04-26-on-semis-acquisition-tsmcs-finer-nodes-teslas-ai-chip-chinas-fabless-companies) (EE Times Current)
- [Bonkers Birthday Badinage](https://hardwarepodcasts.com/podcast/the-amp-hour/2012-06-18-bonkers-birthday-badinage) (The Amp Hour)
- [Silicon 100: Startups Worth Watching in 2023](https://hardwarepodcasts.com/podcast/ee-times-current/2023-08-01-silicon-100-startups-worth-watching-in-2023) (EE Times Current)
- [Seismology 1: Nvidia & Arm | Seismology 2: US IC Manufacturing on the Rebound](https://hardwarepodcasts.com/podcast/ee-times-current/2020-08-07-seismology-1-nvidia-arm-seismology-2-us-ic-manufacturing-on-the-rebound) (EE Times Current)
- [For a couple weeks there...](https://hardwarepodcasts.com/podcast/the-amp-hour/2023-11-28-for-a-couple-weeks-there) (The Amp Hour)

## Citing this page

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