Pat Gelsinger, Ex-Intel CEO, Asserts TSMC’s Over $100 Billion US Investment Will Have Limited Impact as Core Technology Stays in Taiwan

Pat Gelsinger, the former CEO of Intel, has expressed skepticism regarding the potential benefits of Taiwan Semiconductor Manufacturing Company’s (TSMC) substantial investment in the United States. He argues that this move will not enhance the country’s semiconductor capabilities, primarily because research and development (R&D) activities will remain based in Taiwan.

Gelsinger: U. S.Chip Leadership Requires R&D Transfer from TSMC

In recent remarks highlighted by The Financial Times, Gelsinger did not mince words regarding TSMC’s plans to invest $100 billion to expand chip production in the U. S.He posits that without a significant focus on R&D within the United States, TSMC’s investment will fail to position the country as a leader in the semiconductor industry. Gelsinger emphasizes that the U. S.needs technology transfers from TSMC in order to attain a dominant role.

If you don’t have R&D in the U. S., you will not have semiconductor leadership in the U. S.All of the R&D work of TSMC is in Taiwan, and they haven’t made any announcements to move that.

Unless you’re designing the next-generation transistor technology in the U. S., you do not have leadership in the U. S.

– Pat Gelsinger

While Gelsinger sees President Trump’s tariffs as having been somewhat beneficial by promoting domestic chip production, he maintains that the real hurdle lies in getting companies like TSMC to relocate their R&D operations to the U. S.This scenario appears unlikely due to the Taiwanese government’s firm stance against technology transfers.

That said, it would be misleading to claim that TSMC’s U. S.investment will not include R&D initiatives at all. According to the company’s official announcements, TSMC plans to establish a significant R&D center in the U. S., which could enhance American capabilities in managing advanced chip technologies over time. The unfolding of TSMC’s plans in the U. S.will be particularly crucial given the global supply chain challenges and the ongoing geopolitical tensions surrounding Taiwan.

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