A new report out of Taiwan has revealed that the current US administration is tying the reduction on trade of trade tariffs on Taiwan to significant TSMC investment in the US. This investment includes a 49% stake in Intel.
I would think TSMC is in the drivers seat here. They could say “not interested in intel, thanks anyway. Tariff away if you want, but we are the only ones that can make the chips you want so you’ll pay for it anyway”.
TSMC could also counter threaten to close down the newly built TSMC fabs built in the USA as retaliation if new tariffs are put in place.
Playing hardball with the US is suicidal high stakes. It can be done, but the alternative is to be taken over by China. The US will lose tremendously, but Taiwanese won’t be happy either under The Poo’s leadership.
TSMC is literally the shield that keeps Taiwan alive. An attack on TSMC foundries is an attack on the most critical supply chains of every western military in the world.
There is no chance they would risk their entire nation and business by getting into that big a fight when there’s a potential alternative, even if that alternative is subsidizing Intel’s failures.
TSMC Taiwan exists because China hasn’t invaded Taiwan yet, and China hasn’t invaded Taiwan because of the US. Trump is short-sighted enough to tell Taiwan to go fuck themselves and TSMC/Taiwan know it.
That said, it is important for the US to not let Intel go under, despite how badly Intel fucked themselves. As that would leave TSMC as the only other major foundry, a foundry that might just explode one day if China decides to pull the trigger regardless. I wouldn’t personally have forced TSMC to buy a large stake in Intel, but getting them to build more foundries in the US, which seems to be part of the deal, is a pretty solid outcome.
(TSMC makes nVidia, AMD, and Apple chips. And yes Samsung foundries exist, but they aren’t nearly as large of a player)
I highly doubt TSMC and Taiwan would allow China to take anything of note from their factories. Almost certainly TSMC and Taiwan’s military would ensure there is nothing of value left for anybody. Data will be wiped and the sensitive equipment destroyed.
I would think TSMC is in the drivers seat here. They could say “not interested in intel, thanks anyway. Tariff away if you want, but we are the only ones that can make the chips you want so you’ll pay for it anyway”.
TSMC could also counter threaten to close down the newly built TSMC fabs built in the USA as retaliation if new tariffs are put in place.
Playing hardball with the US is suicidal high stakes. It can be done, but the alternative is to be taken over by China. The US will lose tremendously, but Taiwanese won’t be happy either under The Poo’s leadership.
As of recently the US can’t be trusted at all either.
Chose your slavemaster.
Not a fair choice. A third option has surely be found by the Taiwanese.
Yeah it’s just a dumbly high stakes game.
TSMC is literally the shield that keeps Taiwan alive. An attack on TSMC foundries is an attack on the most critical supply chains of every western military in the world.
There is no chance they would risk their entire nation and business by getting into that big a fight when there’s a potential alternative, even if that alternative is subsidizing Intel’s failures.
TSMC Taiwan exists because China hasn’t invaded Taiwan yet, and China hasn’t invaded Taiwan because of the US. Trump is short-sighted enough to tell Taiwan to go fuck themselves and TSMC/Taiwan know it.
That said, it is important for the US to not let Intel go under, despite how badly Intel fucked themselves. As that would leave TSMC as the only other major foundry, a foundry that might just explode one day if China decides to pull the trigger regardless. I wouldn’t personally have forced TSMC to buy a large stake in Intel, but getting them to build more foundries in the US, which seems to be part of the deal, is a pretty solid outcome.
(TSMC makes nVidia, AMD, and Apple chips. And yes Samsung foundries exist, but they aren’t nearly as large of a player)
Edit: expanded my thoughts out a bit more
And if he does and china takes over taiwan, the US is 200% fucked. Now China can steal all if nvidia and AMDs trade secrets.
They know ut and this is just all bark
I highly doubt TSMC and Taiwan would allow China to take anything of note from their factories. Almost certainly TSMC and Taiwan’s military would ensure there is nothing of value left for anybody. Data will be wiped and the sensitive equipment destroyed.
Or as tiny of one lol, pretty sure TSMC has them beat on die size
I tend to agree. I think the US might lean on ASML after that, but they could also tell the US to fuck off.
I read that as ASMR at first. It amused me 😁
the sweet sweet sounds of a semiconductor foundry