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 National Immigration Agency (NIA) said yesterday that it will revoke the dependent-based residence permit of a Chinese social media influencer who reportedly “openly advocated for [China’s] unification through military force” with Taiwan. The Chinese national, identified by her surname Liu (劉), will have her residence permit revoked in accordance with Article 14 of the “Measures for the permission of family- based residence, long-term residence and settlement of people from the Mainland Area in the Taiwan Area,” the NIA said in a news release. The agency explained it received reports that Liu made “unifying Taiwan through military force” statements on her online
A magnitude 5.7 earthquake struck off Taitung County at 1:09pm today, the Central Weather Administration (CWA) said. The hypocenter was 53km northeast of Taitung County Hall at a depth of 12.5km, CWA data showed. The intensity of the quake, which gauges the actual effect of a seismic event, measured 4 in Taitung County and Hualien County on Taiwan's seven-tier intensity scale, the data showed. The quake had an intensity of 3 in Nantou County, Chiayi County, Yunlin County, Kaohsiung and Tainan, the data showed. There were no immediate reports of damage following the quake.
Tung Tzu-hsien (童子賢), a Taiwanese businessman and deputy convener of the nation’s National Climate Change Committee, said yesterday that “electrical power is national power” and nuclear energy is “very important to Taiwan.” Tung made the remarks, suggesting that his views do not align with the country’s current official policy of phasing out nuclear energy, at a forum organized by the Taiwan People’s Party titled “Challenges and Prospects of Taiwan’s AI Industry and Energy Policy.” “Taiwan is currently pursuing industries with high added- value and is developing vigorously, and this all requires electricity,” said the chairman
Actor Darren Wang (王大陸) is to begin his one-year alternative military service tomorrow amid ongoing legal issues, the Ministry of the Interior said yesterday. Wang, who last month was released on bail of NT$150,000 (US$4,561) as he faces charges of allegedly attempting to evade military service and forging documents, has been ordered to report to Taipei Railway Station at 9am tomorrow, the Alternative Military Service Training and Management Center said. The 33-year-old would join about 1,300 other conscripts in the 263rd cohort of general alternative service for training at the Chenggong Ling camp in Taichung, a center official told reporters. Wang would first
RSS