By Wen-Yee Lee and Hyunjoo Jin

TAIPEI/SEOUL (Reuters) – Nvidia’s $5 billion investment in Intel is a double-edged sword for Asian chipmakers such as TSMC as an Intel revival could ease U.S. scrutiny on its foreign rivals although it can boost competition in the long term.

The world’s most valuable company announced the equity investment on Thursday, which will make it one of Intel’s biggest shareholders with a roughly 4% stake. The two companies agreed to jointly develop PC and data center chips.

The deal was welcomed warmly by Intel investors, who propelled its shares 23% on the news. Analysts expect the Nvidia partnership to help the struggling chipmaker make up some ground in artificial intelligence and boost its manufacturing capabilities.

For Taiwan’s TSMC, which even now accounts

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