TSMC Denies Assisting Intel with US Facilities Amidst Intensified Semiconductor Rivalry
Taiwan Semiconductor Manufacturing Company (TSMC) has firmly denied rumors suggesting it is assisting Intel in establishing its US-based manufacturing facilities, calling these claims a "misunderstanding." The denial follows a controversial statement by TSMC's US Chairman, Rick Cassidy, during a CNBC interview, which implied closer collaboration between the two semiconductor giants than previously thought.
Clarifying the Controversy
In the interview, Cassidy suggested that TSMC meets weekly with Intel to provide guidance on advanced process manufacturing and workforce training. Cassidy stated:
“We meet with [Intel] weekly... We’re helping them train on the most advanced stuff.”
However, in a statement reported by ChinaTimes, TSMC has since clarified that it is not assisting Intel employees or directly supporting their US operations. TSMC insists that interactions with Intel are limited to production design discussions and do not extend to facility setup or operational training.
This public rebuttal signals caution on TSMC's part, as collaboration with a direct competitor in the fiercely competitive semiconductor industry could be seen as a strategic misstep.
The TSMC-Intel Tensions
The relationship between TSMC and Intel has been strained since 2021, when Intel’s former CEO Pat Gelsinger criticized reliance on Taiwan's semiconductor supply chain, citing geopolitical risks. This led to Intel losing a 40% discount on TSMC’s 3nm node production, a critical blow for Intel's foundry ambitions.
TSMC’s current denial further reflects the cutthroat competition between the two firms, both of which are vying for dominance in the expanding US semiconductor market, bolstered by the CHIPS Act. While Intel has received a larger share of US government funding, its progress in delivering results has lagged. Conversely, TSMC's Arizona facility is reportedly advancing at a faster pace, signaling an edge for the Taiwanese firm in the ongoing battle for semiconductor supremacy.
What’s at Stake?
The rivalry between TSMC and Intel underscores the high stakes in the global semiconductor industry. As the US semiconductor landscape heats up, TSMC’s cautious approach reflects its strategic focus on maintaining leadership without strengthening its competitors.
With both companies vying for dominance in advanced node production, the question remains: How will these tensions shape the future of US semiconductor manufacturing? Share your thoughts in the comments!
