US Authorities Present Three Proposals to TSMC
Trump Expresses Discontent: "Most Semiconductors Produced in Taiwan"
Taiwanese President: "We Will Respond Prudently"
The second Trump administration is reportedly pressuring Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturing) company, to collaborate with the U.S. semiconductor company Intel, according to Taiwanese media reports.
Taiwanese media outlets such as China Times and Liberty Times cited sources on the 14th, reporting that U.S. authorities recently presented TSMC with three major proposals including 'collaboration with Intel.' These proposals include TSMC building an advanced packaging factory in the U.S., investing in Intel's foundry together with the U.S. government and various partners, and directly taking over Intel's packaging orders related to TSMC's U.S. clients. It is observed that the Trump administration is demanding TSMC, which represents Taiwan's semiconductor industry, to increase advanced semiconductor processes locally in the U.S. and transfer technology to the American company Intel.
On the 13th, President Trump announced the imposition of 'reciprocal tariffs' on countries worldwide, stating, "We must ensure that semiconductors are manufactured in our country. Most of the semiconductors we use are produced in Taiwan." He added, "We want those companies to come to our country," emphasizing, "Taiwan took our semiconductor business. We want that business to come back."
Investment bank Baird recently forecasted in a report that Intel will spin off its wafer foundry business and convert it into a joint venture with TSMC, predicting that "TSMC will provide some semiconductor engineers and expertise to help produce 3nm or 2nm processes in the U.S."
Regarding this, sources told Taiwanese media that it could affect TSMC's credibility with its clients, which has grown under the principle of 'not competing with customers,' and expressed concerns about potential leakage of TSMC's technology.
Researcher Liu Peizhen of the Taiwan Institute of Economic Research (TIER) also evaluated that TSMC and Intel have always been competitors, and that TSMC founder Morris Chang and Chairman Wei Zhejia have very low willingness to cooperate with Intel.
Earlier, Chairman Wei also stated at the company's Q3 earnings briefing in October last year that acquiring Intel's semiconductor factory was not being considered at all.
As concerns over the Trump administration's pressure and TSMC's potential departure from Taiwan grow, the Taiwanese government convened a high-level National Security Council (NSC) meeting chaired by President Lai Ching-te on the 14th to discuss countermeasures.
After the meeting, President Lai held a press conference, saying, "Taiwan is the world's leading semiconductor power, and we will respond cautiously to President Trump's expressed concerns about Taiwan's semiconductor industry," attempting to soothe Trump.
He added, "Although there may be policy changes in the coming years, mutual trust and close cooperation between Taiwan and the U.S. will remain unchanged, so the public can rest assured."
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