TSMC Rejects Claims of Assisting Intel in Establishing US Manufacturing Facilities; Intensifying Semiconductor Competition

TSMC has officially distanced itself from rumors regarding its involvement in assisting Intel with their foundry challenges, labeling the reports as a “mere misunderstanding.”

TSMC Clarifies Its Position Amidst Conflicting Statements

In the wake of community speculation, TSMC’s discomfort with assisting Intel has come into focus. Recently, Rick Cassidy, TSMC’s US Chairman, made headlines during an interview with CNBC, where he mentioned weekly meetings with Intel, suggesting that TSMC has been guiding the tech giant in establishing manufacturing facilities in the United States. He further noted that TSMC is aiding Intel in advancing its manufacturing processes. Cassidy’s remarks included:

We meet with [Intel] weekly and the feedback is we’re helping them increase their ranks. We’re helping them train on the most advanced stuff, so I think they’re pretty happy with what we’re doing.

– CNBC

However, TSMC has since clarified through ChinaTimes that their collaboration with Intel is limited to discussions on production design and not direct support for employee training or facility setup in the US. This clarification marks a notable shift from Cassidy’s earlier statements, emphasizing that TSMC views its relationship with its competitor seriously, particularly amidst the heightened competition inherent in the semiconductor industry.

The relationship between TSMC and Intel has faced significant strain since 2021, when Intel’s former CEO, Pat Gelsinger, commented on the need for a “more balanced supply chain.”This remark indirectly referenced the geopolitical tensions surrounding Taiwan and their potential impact on TSMC’s operations. Following Gelsinger’s statements, Intel reportedly lost a substantial 40% discount on TSMC’s 3nm production services, indicating a deterioration in their partnership.

As the semiconductor market in the United States continues to evolve, both TSMC and Intel are vying for prominence. Despite Intel’s larger allocation from the US CHIPS Act, the company has struggled to meet expectations. In contrast, TSMC appears to be making consistent progress at its Arizona facility, suggesting a shift in market dynamics that may favor TSMC as it solidifies its position in the US semiconductor landscape. The upcoming developments under the Trump administration could further shape TSMC’s ambitions in the US.

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