It was reported that TSMC, the largest contract manufacturer of semiconductors, is considering participating in the factory operation of Intel in the United States.
🟦 TSMC to participate in Intel’s US factory operation?
It was reported that Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), the world’s largest semiconductor foundry company, may be involved in Intel’s semiconductor factory operations in the United States. This consultation is still in the early stages, but a proposal has emerged for TSMC to lead Intel’s factory operation, and it is said that it was at the request of the Trump administration.
Until now, Intel has stuck to the “IDM (Vertically Integrated) model” that designs and manufactures in-house, but in recent years, it has increasingly fallen behind TSMC in technology competition. In particular, the company is struggling in the development of advanced process technology and continues to be in a difficult financial situation, so it is believed that the company wants to regain its competitiveness by incorporating TSMC’s technology and capital.
🟦 Why is TSMC involved in Intel’s U.S. factory?
There are several key factors behind TSMC’s move.
1. Intel’s predicament
In recent years, it has lagged behind TSMC and Samsung in terms of technology, especially in the development of advanced processes below 5nm. Intel will make its manufacturing division a subsidiary in 2024, allowing for the introduction of external capital, but a specific partner has not yet been decided.
2. U.S. Government Involvement
The Trump administration (and the Biden administration, as well) have a policy of stepping up semiconductor production in the United States. If Intel were to collaborate with foreign capital, it would likely be funded by a U.S. semiconductor design company in order to avoid a complete dependence on foreign companies.
3. TSMC’s Strategic Expansion
TSMC has traditionally set up production bases mainly in Taiwan, but is increasingly building factories in the United States and Japan to avoid geopolitical risks. By engaging in Intel’s U.S. factory, TSMC is likely to further strengthen its presence in the U.S. market and make it easier to receive government support.
🟦 Summary
According to this report, TSMC may be involved in Intel’s US factory operation, and discussions are underway. In the background, Intel’s technical and financial challenges, the U.S. government’s measures to ramp up domestic production, and TSMC’s strategic expansion are involved.
This is exactly what it was like to attract investment to the U.S. instead of subsidies. It is clear that the US government is not just relying on subsidy policies, but is actually trying to strengthen semiconductor manufacturing in the United States by involving global companies like TSMC.
