TSMC apparently being offered 3 options to avoid tariffs, with a JV or likely Intel doing packaging

It is understood that there are estimated to be three plans proposed by the United States:

First option, TSMC directly builds advanced packaging plants in the United States to complete one-stop services.

Regarding the first point, in fact, TSMC has not been very willing to build packaging plants in the United States. Mainly due to the shortage of manpower and poor gross profit margin, the simultaneous construction of packaging plants may also be detrimental to local packaging plants such as Amkor and Intel.

In October 2024, TSMC and Amkor have signed a memorandum of cooperation to provide advanced packaging and testing services in Arizona. Close cooperation between the two parties can shorten the overall product production cycle.

Intel's advanced packaging base is not small either. It has previously announced that it will expand investment in its advanced packaging plant in New Mexico and accelerate the development of 3D packaging technology Foveros.

Second option, the U.S. government and many major manufacturers such as TSMC have jointly invested in Intel's independent foundry business, including TSMC's concurrent technology investment.

The second option is for the U.S. government to propose a joint venture plan, hoping that TSMC and a number of major manufacturers will "jointly participate in this grand initiative" and jointly invest in Intel's wafer foundry business, including TSMC providing technology transfer.

Third option, Intel, which is as advanced as TSMC in advanced packaging, will directly undertake subsequent packaging orders from TSMC’s customers in the United States.

The third option is for Intel to directly undertake subsequent packaging orders from TSMC’s customers in the United States. For example, Apple, which is determined to produce films at TSMC's U.S. factory, is quite familiar with cooperating with Intel.

Semiconductor industry players said that judging from the fact that the U.S. government is taking shortcuts to strengthen local "American manufacturing" and will try its best to keep Intel alive, TSMC is almost the only hope for rescue.

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Wouldn't that be funny... If TSMC took control of Intel fabs, leaving INTC as nothing more then an IA IP house, a shell of it former self.

ASG must be turning over in his grave. What a terribly sad ending.

The fabs are worth more than half of the current $100b market cap.

So a takeover at $50B to $75B could take the stock to the low $30s by the look of it.

There would be no other bidders so whatever the stock does on any announcement would cover more than 90% of the gain.

Typically there a discount which closes as the deal date approaches.

If this is not the way forward, then a breakup of Foundry seems kind of inevitable.

The deal could even be a breakup transaction, where TSMC gets the newer fabs and packaging, and GF gets the older fabs. Samsung could pick up something as well, and having multiple buyers in the takeover (not a JV) makes the acquisition easier to handle.

moments ago, Bloomberg confirmed just that when it reported that Taiwan's chip giant, Taiwan Semiconductor Manufacturing, or TSMC, is considering taking a controlling stake in Intel Corp.’s factories to increase US chip production, at the request of Trump administration officials as the president looks to boost American manufacturing and maintain US leadership in critical technologies.

@et+1jkzxqdne As packaging cost often is higher than die cost, due to the use of increasingly high tech interposers to connect chiplets, it may be possible that TSMC builds or does a JV with Intel on packaging.

A Foundry breakup isn't just about fabs and packaging has been one of bright spots for Intel, even as they were slow to adopt chiplets (yet many on Team Blue liked chiclets, so go figure)

Analysts are tossing shade at the notion of a JV, but they are not controlling what is maybe going to happen.

Plenty of good arguments about how different Intel and TSMC fabs are designed and equipped, but none of those issues are insurmountable.

Even read an opinion that the deal couldn't happen because TSMC is on newer nodes. They have plenty of older nodes, and in any case a JV might just include a few of the newest Intel fabs.

Intel doesn't need TSMC to show them how to make the newer nodes, but that development is getting so difficult for everyone that a JV focused on the leading edge might be good for both parties.

Foundry really needs to be broken up and a JV could be a way to do that, but it seems likely to happen anyway. If Caufield is the CEO it would almost certainly result in older fabs being sold to GF.

Actually, the reunification card is the deck that’s being played. The card has not been played yet. You may want to make a deal with the cards in hand.

@bk, what a silly thing to say. Anonymous or no, your comment is what is judged. Perhaps I should've been more clear...your comment has no credibility.

https://spectrum.ieee.org/tsmc-arizona

I'm fairly sure with the AZ plant functioning TSMC doesn't have to worry about tarriffs.

TSMC is not a slave that must listen to US government.

What happened to US government and Intel? Same rudeness and corruption, licking a-s to one-person’s random words. This is like the zero-dollar-sale criminal.

@bq
You realize credibility are non-existent when all posts are anonymous.
You could be talking to a 300lb dude named Chuck.

@bk, "are BS and lies, just like all things Trump". You do realize you lose all credibility when you make ridiculous statements like that, yes? Love, like, or hate Trump as you please. But when you fall into "everything he says is a lie!" it's difficult to take you seriously.

Now let's find something else to bi--h about intel right ? Fu---n stupid bunch of hires

If TSMC doesn't cooperate, the US might offer Samsung the same deal.

All of these 3 'options' are BS and lies, just like all things Trump. Only if Donald allows China to invade Taiwan (which he might do) does TSMC need to worry.

Why does Intel have to rely on US government to use the political power to push TSMC to contribute money and talents to help it get the 2nm and 3nm processes working? Does Intel has any techical expertise and pride to solve its own issues?

@b5+1jkzxqdne Lie as much as you want but Intel is a leader in ATM and Packaging.

The customer list keeps on growing.

TSMC was on the ropes until they got Apple, who is always on leading node and is what funded all leading node development since then.

And that was with massive Taiwan subsidies.

Intel has it's well-documented issues, but people who think TSMC somehow reinvented the fab are way off base.

As the trade is leveled by tariffs, and the subsidy effect recedes like the tide, just see who is swimming na--d.

What TSMC said...what IFS test equipment is this at Intel...? Looks like 1990...LMAO....

Just think if you work in IFS / TD...you are standing around like a 3rd wheel...Gee...what do we do now...our technology, process, test equipment, is complete BS compared to TSMC. More hands in pocket playing pool....lmao...Intel IFS/TD are truly obsolete....

TSMC is helping Intel currently, 70% Intel chips are made by TSMC.

Intel falls behind due to its lagging in technology, it is not due to geography reasons. Intel (Pat) keeps on using excused to hide its own competence.

In the end, customers will judge you by what you make, but by which government is supporting you. If Intel can not make it, then each customer will lose more than 25%, much worse than paying tariff.

I’m from the government and I’m here to help.

Intel and US government is bullying TSMC. This is unfair. US behaves like a robber, violating laws. What a shame!!!!

TSMC should just say NO and pass all tariffs and the cost of dealing with this sh-t back to the fabless companies. That's the beauty of NOT having bolz in US hands. Once you put bolz into someone's hands, he squeezes and you comply.

@a1+1jkzxqdne The White Zombie was the most socialist president, maybe ever, and he did nothing to the tariffs that Orange Zeesus started in his first term.

Accept that globalization is rapidly in retreat and that tariffs are a tool to offset the egregious state subsidies that various countries use. Particularly in the CCP but elsewhere as well.

That is not free or fair trade.

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TSMC apparently being offered 3 options to avoid tariffs, with a JV or likely Intel doing packaging

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