A former executive at Taiwan Semiconductor Manufacturing Company (NYSE:TSM) said Intel Corporation (NASDAQ:INTC) is too far behind to catch up—and should focus on mature process chips instead of trying to rival the world's top chip foundry.

What Happened: At a book launch event in Taiwan earlier this week, Chiang Shang-Yi, TSMC's former co-chief operating officer, delivered a blunt assessment of Intel's current position in the chip industry, reported China's United Daily News.

Chiang, who played a critical role in building TSMC into a global semiconductor powerhouse, said Intel was once the "king" of the industry—but is now a "nobody."

He warned that Intel's efforts to compete with TSMC in advanced chip manufacturing, such as the 2-nanometer node, are futile, and urged the company to consider acquiring or merging with companies that specialize in mature manufacturing processes.

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"Intel should merge with a mature process chipmaker," he said, without naming specific targets.

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Why It's Important: Chiang's comments come as Intel undergoes a major turnaround under new CEO Lip-Bu Tan, with a focus on achieving manufacturing parity with TSMC and building out its foundry business.

Earlier, it was reported that Intel’s SuperFluid cooling technology is gaining attention for its potential application in Nvidia’s AI servers.

Price Action: Intel’s shares closed at $22.71 on Friday, reflecting a 3.85% decline. In after-hours trading, the stock dipped an additional 0.44%. Year to date, Intel has risen 12.31%, according to Benzinga Pro data.

Benzinga's Edge Rankings give Intel (INTC) a 3.11% growth rating. Want to see how it compares to TSMC and other companies? Click here for the full breakdown.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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