Shares of Taiwan Semiconductor (TSM 4.73%) rose today despite there being no company-specific news on the stock. Instead, investors appeared to react positively to the news Intel CEO Pat Gelsinger retired over the weekend and was apparently forced out of the company after shares plummeted during his tenure.

TSMC shares rose on the news, as Gelsinger’s departure appears to signal a setback in Intel’s foundry strategy. As of 1:10 p.m. ET, Taiwan Semi’s stock was up 5.2%. What’s noteworthy is that Intel shares also rose today, gaining 3.5% at the same time.

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Why Gelsinger’s departure is good news for Intel

Gelsinger’s branding initiative as Intel CEO was a push to open Intel’s foundry business to outside customers and essentially mimicked TSMC’s business model. This was also the key to Intel receiving billions in funding from the CHIPS Act.

Gelsinger announced a goal of making Intel the world’s second-largest contract chipmaker after TSMC, but that goal is now in question now that Gelsinger is no longer at the helm.

It’s unclear what the future holds for Intel Foundry Services, but any delay in expansion or plans should benefit TSMC. In its press release announcing Gelsinger’s resignation, Intel said the leadership structure of the foundry business remained unchanged.

TSMC’s lead is secure

TSMC dominates the contract chip market, with a market share of more than 50% in third-party chip manufacturing and around 90% in advanced chip manufacturing. Under Gelsinger, Intel arguably emerged as the company’s biggest threat, but that threat has likely diminished.

Intel is still losing billions in the foundry business every quarter, and the next CEO may not see the same growth opportunity. In any case, today’s announcement from Intel is a good sign for TSMC.