Pat Gelsinger Skeptical of TSMC's US Investment Impact, Calls for Greater R&D Presence

Intel's former CEO, Pat Gelsinger, has voiced skepticism regarding TSMC's $100 billion investment to expand chip manufacturing in the United States, asserting that it won't enhance America's semiconductor leadership without a significant transfer of research and development (R&D) from Taiwan.

In recent comments reported by The Financial Times, Gelsinger emphasized that merely increasing manufacturing capabilities isn't sufficient to position the US as a leader in semiconductor technology. He underlined the necessity of establishing substantial R&D activities domestically, which he believes is not part of TSMC's current strategy for its US expansion.

"If you don’t have R&D in the US, you will not have semiconductor leadership in the US," Gelsinger stated. "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 US, you do not have leadership in the US."

While acknowledging the incremental benefits of previous US tariffs under the Trump administration—which have encouraged domestic production—Gelsinger argued that genuine technology leadership requires more profound changes, specifically the relocation or creation of significant semiconductor R&D facilities within the US.

However, Gelsinger's statements have sparked debate, given that TSMC previously announced plans to establish a major R&D center in the US. According to TSMC's official communications, this center is expected to drive technological developments and contribute to local innovation over time. Nevertheless, the extent and scale of the technology transfer from Taiwan to the United States remain uncertain, particularly amid the Taiwanese government's cautious stance against transferring advanced semiconductor IP abroad due to national security and economic considerations.

As geopolitical tensions around Taiwan continue, establishing secure and self-sufficient semiconductor supply chains has become a global priority. The evolution of TSMC’s US-based operations, including how extensively it integrates R&D capabilities, will significantly impact America's aspirations to regain and maintain semiconductor leadership.

The semiconductor industry and policymakers alike will be closely monitoring how these dynamics evolve in the coming years.

What's your perspective on Pat Gelsinger's comments regarding semiconductor leadership in the US? Share your thoughts in the comments below!