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Intel falls behind Asian rival TSMC in chip race

Delays to 7-nanometer production could spur US titan to embrace outsourcing

Intel is struggling to catch up with TSMC in the race for chip dominance. (Source photos by Shihoko Nakaoka and Shinya Sawai)

TAIPEI -- Intel has announced its latest chip technology will face significant production delays, leaving the world's biggest maker of PC and server microprocessors trailing its key Asian rival Taiwan Semiconductor Manufacturing Co. in the battle for semiconductor leadership.

After Intel announced the launch of its 7-nanometer chips could be delayed until as late as 2023, shares of TSMC rose nearly to the daily limit of 10% in the early trading session on Monday in Taipei. This jump helped the chip industry bellwether reach a record market cap of more than 10 trillion New Taiwan dollars ($340.1 billion) -- more valuable than Tesla, P&G, Intel and Samsung Electronics. Already the world's most valuable chip stock, TSMC is also Asia's third-largest company by market cap, behind only e-commerce giant Alibaba Group Holding and Tencent Holdings. Samsung's shares rose around 1.5% in Monday morning trading.

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