Trump Administration Presents Proposal to TSMC
Increase US Semiconductor Production and Support Intel
Concerns Over Financial Waste and Technology Leakage in Taiwan
[Editorial by Kim Yoon-ji, Edaily] There are reports that TSMC, the world’s largest foundry (semiconductor contract manufacturing) company from Taiwan, is considering acquiring a stake in the American semiconductor company, Intel. This move comes in response to pressure from the Trump administration, which aims to revitalize manufacturing within the US and maintain leadership in advanced technology sectors.
According to sources cited by Bloomberg on the 15th (local time), officials from the Trump administration recently met with TSMC and proposed this plan, which TSMC appeared open to. The Trump administration hopes that TSMC will purchase Intel’s stakes and operate Intel’s semiconductor plants in the US, potentially alleviating Intel’s financial troubles, sources indicated.
The discussions reportedly include plans for major US semiconductor design companies, supported by the US government, to acquire Intel shares along with TSMC. Political opposition is expected, as it could be interpreted as transferring American company control to Taiwan, similar to when Japan’s Nippon Steel attempted to acquire US Steel. A White House official stated that the probability of President Trump supporting a foreign company running Intel’s plants is low.
These discussions are in the early stages, and it is unclear what exact form the partnership between TSMC and Intel would take or whether Intel is receptive to such talks, according to Bloomberg.
Once a dominant player in the semiconductor market, Intel has lost its standing amid competition with AI chip manufacturers like Nvidia. Facing deteriorating fiscal conditions due to poor performance, Intel is at a critical juncture where extensive funding is needed for development and facilities. Last year, Intel announced significant restructuring plans, and its CEO, Pat Gelsinger, resigned.
Meanwhile, Taiwan’s media, including the China Times, reported that Trump’s second-term administration is pressuring TSMC to collaborate with Intel. According to sources, the Trump administration recently presented TSMC with three scenarios: constructing advanced packaging plants in the US, investing in Intel foundries with the US government, and directly acquiring follow-up packaging orders related to Intel’s TSMC US clients.
The China Times described the potential acquisition of Intel’s stake by TSMC as “squandering assets,” as it would not only require about 30% of TSMC’s R&D personnel to relocate to the US, but successful mass production of Intel’s 1.8-nano (18A) semiconductors could also affect orders from TSMC’s major 2-nano (nm) clients. There are also concerns over potential technology leaks from TSMC.