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.”
Taiwan would welcome the return of Honduras as a diplomatic ally if its next president decides to make such a move, Minister of Foreign Affairs Lin Chia-lung (林佳龍) said yesterday. “Of course, we would welcome Honduras if they want to restore diplomatic ties with Taiwan after their elections,” Lin said at a meeting of the legislature’s Foreign Affairs and National Defense Committee, when asked to comment on statements made by two of the three Honduran presidential candidates during the presidential campaign in the Central American country. Taiwan is paying close attention to the region as a whole in the wake of a
Chinese Nationalist Party (KMT) Chairman Eric Chu (朱立倫), spokeswoman Yang Chih-yu (楊智伃) and Legislator Hsieh Lung-chieh (謝龍介) would be summoned by police for questioning for leading an illegal assembly on Thursday evening last week, Minister of the Interior Liu Shyh-fang (劉世芳) said today. The three KMT officials led an assembly outside the Taipei City Prosecutors’ Office, a restricted area where public assembly is not allowed, protesting the questioning of several KMT staff and searches of KMT headquarters and offices in a recall petition forgery case. Chu, Yang and Hsieh are all suspected of contravening the Assembly and Parade Act (集會遊行法) by holding
PRAISE: Japanese visitor Takashi Kubota said the Taiwanese temple architecture images showcased in the AI Art Gallery were the most impressive displays he saw Taiwan does not have an official pavilion at the World Expo in Osaka, Japan, because of its diplomatic predicament, but the government-backed Tech World pavilion is drawing interest with its unique recreations of works by Taiwanese artists. The pavilion features an artificial intelligence (AI)-based art gallery showcasing works of famous Taiwanese artists from the Japanese colonial period using innovative technologies. Among its main simulated displays are Eastern gouache paintings by Chen Chin (陳進), Lin Yu-shan (林玉山) and Kuo Hsueh-hu (郭雪湖), who were the three young Taiwanese painters selected for the East Asian Painting exhibition in 1927. Gouache is a water-based
President William Lai (賴清德) has appointed former vice president Chen Chien-jen (陳建仁) to attend the late Pope Francis’ funeral at the Vatican City on Saturday on his behalf, the Ministry of Foreign Affairs said today. The Holy See announced Francis’ funeral would take place on Saturday at 10am in St Peter’s Square. The ministry expressed condolences over Francis’ passing and said that Chen would represent Taiwan at the funeral and offer condolences in person. Taiwan and the Vatican have a long-standing and close diplomatic relationship, the ministry said. Both sides agreed to have Chen represent Taiwan at the funeral, given his Catholic identity and
RSS