An alleged US government plan to encourage Taiwan Semiconductor Manufacturing Co (TSMC) to form a joint venture with Intel to boost US chipmaking would place the Taiwanese foundry giant in a more disadvantageous position than proposed tariffs on imported chips, a semiconductor expert said yesterday.
If TSMC forms a joint venture with its US rival, it faces the risk of technology outflow, said Liu Pei-chen (劉佩真), a researcher at the Taiwan Industry Economics Database of the Taiwan Institute of Economic Research.
A report by international financial services firm Baird said that Asia semiconductor supply chain talks suggest that the US government would ask TSMC to send engineers to Intel’s US fab, applying the company’s know-how to ensure both the fab and subsequent manufacturing projects are viable.
Photo: CNA
Although TSMC has built production facilities in Dresden, Germany, and Kumamoto, Japan, through joint ventures, the local businesses it partners with are its customers, Liu said.
If a joint venture with Intel is formed, it would inevitably focus on advanced semiconductor technology and once technology leaks occur, that could jeopardize TSMC’s leading edge in advanced technology, he said.
As US President Donald Trump is committed to prioritizing US interests, if TSMC cooperates with Intel it might be placed at a disadvantage, he added.
TSMC’s leadership in advanced technology is irreplaceable and gives it strong bargaining power, Liu said, adding that if the US imposes tariffs on imported chips, the increased costs could be passed on to TSMC’s customers in the US.
Therefore, a joint venture with Intel is the worse choice for TSMC and more unfavorable than Trump’s tariff plans, he said.
Intel is facing operational difficulties and is encountering bottlenecks in technological development, while TSMC is in a leading position. If a TSMC-Intel joint venture is formed, it would help Intel overcome difficulties and bolster the development of the US semiconductor manufacturing industry, Liu said.
TSMC chairman C.C. Wei (魏哲家) has said the company has no interest in acquiring Intel’s chip manufacturing facilities after the US firm spun off its foundry business, he said.
Baird analyst Tristan Gerra said that while there is no confirmation and the potential completion of the project could take a long time, the move would make sense, “further building on Intel’s prior CEO’s focus on the company’s core competency, manufacturing.”
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