TSMC can’t make Intel great again: There’s nothing inside such a chip deal
Subscribe to enjoy similar stories. Trying to force a partnership between Taiwan Semiconductor Manufacturing Company (TSMC) and Intel Corp would be a wildly complex ordeal. Already, the reported request of the Trump administration for TSMC to take a controlling stake in Intel’s US factories is facing valid questions about feasibility from all sides.
Washington likely won’t support a foreign company operating Intel’s domestic factories. Just look at how that’s going over in the steel sector. Meanwhile, many in Taiwan are concerned about TSMC being forced to transfer its bleeding-edge tech capabilities and give up its strategic advantage.
This is significant because this dominance not only keeps it ahead of industry rivals, but is also seen by many as the ‘holy mountain’ that secures this self-governing island from Chinese aggression. On a more practical level, the two chip-makers are vastly different in everything from corporate cultures to manufacturing operations. TSMC revolutionized the industry with its pure-play foundry approach, Intel has historically produced chips it helped design.
It would be a time-consuming and expensive headache for TSMC to take over Intel’s factories in the US or integrate them with its own. It’s not clear that this proposed tie-up will be enough to restore Intel’s glory. The California-based company has already been showered with favour from the US government via policies aimed at strategically onshoring semiconductor making.
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