Intel CEO Lost A 40% Discount For TSMC’s Latest Chip Tech After Taiwan Remarks – Report
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Intel CEO Patrick Gelsinger's comments about the Taiwan Semiconductor Manufacturing Company's (TSMC) manufacturing presence in China soured relations between the two firms and eventually led to Intel missing out on key discounts offered by TSMC, according to a fresh report from Reuters. Intel is currently focusing on manufacturing chips with its 18A manufacturing process, and Reuters' report shares that before Gelsinger's comments, TSMC was offering Intel a whopping 40% discount for its 3 nanometer process manufacturing family. However, the Taiwanese firm decided to withdraw the offer following Gelsinger's remarks.
Intel CEO's Remarks About TSMC's Taiwan Risk Soured Relations Between Two Companies
Ever since Gelsinger took over the helm at Intel, the firm has focused on reestablishing its manufacturing technology leadership in the global chip manufacturing industry and setting up a contract manufacturing division to compete with TSMC. At the same time, Intel is also working with TSMC to outsource some of its production needs to the Taiwanese firm.
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As per Reuters, in 2021, TSMC had offered Intel a stunning 40% discount for the 3 nanometer technology. Back then, 3 nanometers was TSMC's leading edge chip manufacturing process. One wafer cost $23,000 back then, and TSMC had offered Intel a 40% discount to bring the price to roughly $14,000.
However, back then, Intel was moving full speed ahead to attract US government subsidies for its contract manufacturing and advanced technology push. As part of the effort, Gelsinger was eagerly pointing out the geopolitical risks associated with advanced chip manufacturing being concentrated in Taiwan.
Some of his most controversial remarks, which ignited a back and forth with
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