TSMC fabs are being built in the Phoenix area of Arizona, USA./Courtesy of TSMC

The U.S. government is reportedly pressuring Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturing) corporation, to collaborate with American semiconductor corporation Intel, according to Taiwanese media including China Times on 14th.

The Donald Trump administration is said to have recently presented three main proposals to TSMC, including the construction of an advanced packaging plant in the U.S., investment in Intel's foundry in partnership with the U.S. government and several partners, and direct acquisition of packaging orders related to Intel's TSMC U.S. clients.

Liu Peijian, a researcher at the Taiwan Institute of Economic Research (TIER), reported that TSMC and Intel have always been competitors, and it is unlikely that Morris Chang, TSMC's founder, and C.C. Wei, the chairman, will have a strong willingness to collaborate with Intel. He added that TSMC must invest directly in the U.S. to secure technology and operational leadership, noting that joint ventures could lead to the leakage of core technology.

Additionally, Chairman Wei stated through the company's third-quarter earnings announcement last October that the acquisition of Intel's semiconductor factory was not under consideration.

Meanwhile, President Trump announced the introduction of 'mutual tariffs' against various countries on the 13th (local time), stating, 'We must ensure that semiconductors are manufactured in the United States.'

He noted, 'Most of the semiconductors used in the U.S. are produced in Taiwan, and some are produced in South Korea,' adding, 'We want those companies to come to America.' He also stated, 'Taiwan took our semiconductor business. We want that business to return.'

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