Taiwan Semiconductor Manufacturing (NYSE:TSM) just made a bold move, announcing a $100 billion investment in U.S. chip manufacturing. While this may seem like a win for American tech, don't expect TSMC to send its best chip tech to U.S. shores. Instead, the Taiwanese giant will focus on building new plants and an R&D center, leaving its cutting-edge production processes in Taiwan. This could be a game-changer for U.S. chip ambitions but presents an opportunity for Intel (NASDAQ:INTC), which continues to struggle with delays in its own chip plants, including its much-hyped Ohio facilities, now not expected to be operational until 2030 at the earliest.

Intel, meanwhile, has its eyes on the prize with its 18A manufacturing process. The company is in talks with Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO), both testing Intel's latest chips, which are crucial for powering AI tech. But it's still a waiting game. Intel has yet to seal the deal with these major players, and after some disappointing results last year, the stakes are high. Even if these tests go well, Intel still has a long road ahead to secure its place as the go-to chip maker for top-tier customers, especially as its AI chip timelines slip further into the future.

It's clear: the semiconductor battle between Intel and TSMC is heating up. With TSMC doubling down on U.S. production, it's taking its competition with Intel to another level. But Intel is not out of the game yetif it can overcome its delays and secure these high-profile contracts, it could still turn things around. Investors should keep a close eye on how these chips fallIntel's ability to adapt will determine whether it can hold its own or get left behind.