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.”
The first of 10 new high-capacity trains purchased from South Korea’s Hyundai Rotem arrived at the Port of Taipei yesterday to meet the demands of an expanding metro network, Taipei Rapid Transit Corp (TRTC) said yesterday. The train completed a three-day, 1,200km voyage from the Port of Masan in South Korea, the company said. Costing NT$590 million (US$18.79 million) each, the new six-carriage trains feature a redesigned interior based on "human-centric" transportation concepts, TRTC said. The design utilizes continuous longitudinal seating to widen the aisles and optimize passenger flow, while also upgrading passenger information displays and driving control systems for a more comfortable
Instead of focusing solely on the threat of a full-scale military invasion, the US and its allies must prepare for a potential Chinese “quarantine” of Taiwan enforced through customs inspections, Stanford University Hoover fellow Eyck Freymann said in a Foreign Affairs article published on Wednesday. China could use various “gray zone” tactics in “reconfiguring the regional and ultimately the global economic order without a war,” said Freymann, who is also a nonresident research fellow at the US Naval War College. China might seize control of Taiwan’s links to the outside world by requiring all flights and ships entering or leaving Taiwan
Taiwan's first indigenous defense submarine, the SS-711 Hai Kun (海鯤, or Narwhal), departed for its 13th sea trial at 7am today, marking its seventh submerged test, with delivery to the navy scheduled for July. The outing also marked its first sea deployment since President William Lai (賴清德) boarded the submarine for an inspection on March 19, drawing a crowd of military enthusiasts who gathered to show support. The submarine this morning departed port accompanied by CSBC Corp’s Endeavor Manta (奮進魔鬼魚號) uncrewed surface vessel and a navy M109 assault boat. Amid public interest in key milestones such as torpedo-launching operations and overnight submerged trials,
Quarantine awareness posters at Taiwan Taoyuan International Airport have gone viral for their use of wordplay. Issued by the airport branch of the Animal and Plant Health Inspection Agency, the posters feature sniffer dogs making a range of facial expressions, paired with advisory messages built around homophones. “We update the messages for holidays and campaign needs, periodically refreshing materials to attract people’s attention,” quarantine officials said. “The aim is to use the dogs’ appeal to draw focus to quarantine regulations.” A Japanese traveler visiting Taiwan has posted a photo on X of a poster showing a quarantine dog with a
RSS