The Trump administration has reportedly urged TSMC to partner with Intel and expedite its investments in the US. Sources suggest that TSMC is weighing a controlling stake in Intel's factories, a move experts warn could be more harmful than beneficial. Taiwan's Minister of Economic Affairs J.W. Kuo stated that all foreign investments require approval, adding that no applications related to this proposal have been submitted thus far.
Pei-chen Liu, Director of the Industrial Economics Database at the Taiwan Institute of Economic Research, noted that TSMC's dominance makes US expansion feasible, with 2nm mass production set for late 2025. However, Liu cautioned that rescuing Intel—via equity stakes, joint ventures, or mergers—poses risks, including cultural misalignment, internal resistance at Intel, and potential technology leakage. Given Intel's market cap of US$104.6 billion—just a fraction of TSMC's US$1 trillion—any cooperation could unintentionally strengthen a rival.
Reports suggest Intel may offload operations to TSMC and Broadcom. Dr. Chien-yi Chang, President of the Taiwan Institute of Economic Research, said the Trump administration often makes public demands before negotiations. While the US has yet to formally request TSMC's most advanced processes relocate stateside, government regulations limit overseas fabs to two generations behind (N-2). Kuo reaffirmed that TSMC's cutting-edge nodes will remain in Taiwan and that regulatory reviews would only commence upon formal application.
If a request from Washington materializes, sources suggest TSMC's role in aiding Intel would go beyond a business decision, entangling it in geopolitical complexities.
Article edited by Elaine Chen
