Intel Corp (INTC)

[wthdik2]

TSMC spends almost all of its cash flow for CAPEX

CAPEX is a component of the cash flow calculation..so pretty sure you can't compare the two numbers (#ref error in excel terms)

a better metric would be to compare CAPEX as a % of revs or maybe gross margin $. If you're saying TSMC is much higher than Intel in these areas..you are right. TSMC spends just as much as Intel (more in '15) on a lower revenue/gross margin base...but their revenues grew 27% last year and are expected to grow another 17% this year (compared to 6% and zero% for Intel)..so they are obviously investing to meet that growth.

What happens if the projected growth doesn't happen?? Same as Intel or any other foundry...you slash cap ex.