But Huang had an alternative explanation for Intel's reduction in capital spending.
"One way to look at this is not as bad news, but as a direct result of Intel's gain of market share over its rivals," he said. "It simply may not need to spend so much on new equipment now."
Intel holds about 85 percent of the world's computer-chip market. Its closest rival, Advanced Micro Devices Inc, has declined to around 15 percent from 17 percent in the third quarter of last year, Huang said.
But there may be a slight benefit to Intel's plan.
"TSMC might have a chance to get foundry orders from Intel, if Intel isn't investing in its own foundries, but this will be a temporary effect," said Ben Lee (
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