TSMC, Samsung stand to gain if Intel exits foundry business, Bernstein says

Bernstein says TSMC 2330.TW and Samsung's 005930.KS foundry will benefit the most if Intel INTC.O exits chip manufacturing business

Last week, Intel warned investors it may have to get out of the chip manufacturing business if it does not land external customers to make chips in its factories

Brokerage says semiconductor equipment market, especially for EUV (Extreme Ultraviolet) supply chain would be negatively impacted since Intel is a major capex spender

"Intel is a major contributor of EUV revenue with 15-20% contribution"- Bernstein

Bernstein says if Intel exits manufacturing, TSMC's semiconductor material supplier Hoya could see its market share in EUV mask blanks grow from 70% to 100%, taking over the share currently held by Intel's supplier AGC

"For TSMC & Samsung, time to redesign chips & build capacity means a time lag from Intel's decision to the actual change, but TSMC clearly will benefit if Intel turns fabless," brokerage says