TSMC to lock horns with Intel with its A16 chip manufacturing tech

Taiwan Semiconductor Manufacturing Co (TSMC) recently dropped the news that they’re gearing up to kick off production for their latest chip manufacturing tech, dubbed “A16,” in the latter half of 2026. This move sets the stage for a head-to-head battle with Intel to claim the title of producing the fastest chips worldwide.

TSMC, known as the big shot in making top-notch computer chips and a major player in supplying tech giants like Nvidia and Apple, spilled the beans at a conference in Santa Clara, California. TSMC bigwigs mentioned that instead of smartphone companies, it’s likely the folks crafting AI chips who will be first in line to jump on this new technology.

According to analysts chatting with Reuters, the tech unveiled on Wednesday might just throw some shade on Intel’s brag from February about surpassing TSMC in churning out the speediest computing chips using their fancy new tech dubbed “14A.”

Kevin Zhang, TSMC’s top dog in business development, spilled the beans to reporters, mentioning that they’ve whipped up their new A16 chip-making process quicker than anticipated, all thanks to the hefty demand from AI chip companies. He kept it hush-hush though, not dropping any names of specific customers.

AI chip firms “really want to optimize their designs to get every ounce of performance we have,” Zhang said.

Zhang mentioned that TSMC doesn’t think they need to splash out on ASML’s new “High NA EUV” lithography tool machines to whip up the A16 chips. Intel spilled the beans last week that they’re itching to get their hands on these machines, each worth a whopping $373 million, to cook up their 14A chip.

TSMC also spilled the beans on a fresh tech that juices up computer chips from the flip side, speeding up those AI chips. This nifty upgrade is set to hit the shelves in 2026. Intel just dropped news about a similar tech, hoping it’ll be a key player in their competitive game. Analysts are buzzing, saying these announcements really put Intel’s claims of regaining the top spot in chipmaking under scrutiny.

“It’s debatable, but on some metrics, I don’t think they’re ahead,” Dan Hutcheson, vice chair at analyst firm TechInsights, said of Intel.

Kevin Krewell, a big shot at TIRIAS Research, gave a heads-up that despite the hype, both Intel and TSMC’s tech won’t be hitting the streets for a while. They’ll have to walk the talk and show that the real chips live up to the promises made in their flashy presentations.