US President Donald Trump’s push for Taiwanese firm TSMC to buy Intel’s chipmaking operations has hit a major roadblock as TSMC has stated its disinterest and warned that tariffs may not be enough to change its mind.
TSMC is a foundry that produces semiconductors designed by clients, not its own chips. Its culture, which prioritizes neutrality, would likely clash with Intel’s approach, said Tim Culpan, founder of media outlet Culpium. Intel’s decline was due to internal failures, not lack of funds or equipment.
A joint venture between TSMC and Intel could compromise the firm’s technological edge by exposing sensitive information through leaks, according to Liu Pei-chen, a researcher at the Taiwan Institute of Economic Research. President Trump’s commitment to prioritizing US interests may also hinder TSMC’s bargaining power.
Analysts believe that TSMC would be better off accepting American tariffs rather than risking its technological advantage. The best solution, say experts, is for TSMC to expand its operations in Arizona and increase chip production for Intel and other US companies, while boosting cooperation on packaging critical to AI development.
Source: https://qz.com/tsmc-intel-broadcom-ai-chips-taiwan-trump-tariffs-1851765167