TAIPEI (Taiwan News) — TSMC’s recently announced NT$3.29 trillion (US$100 billion) investment will not revive the US chip industry, said former Intel CEO Pat Gelsinger, reported the Financial Times.
US President Donald Trump hailed the investment as a way to bring semiconductor production back to the US. He had accused Taiwan of “stealing” the US chip industry and threatened to impose tariffs on chip imports.
Trump softened his tone on Taiwan's chip industry after TSMC's investment announcement. He said the deal meant TSMC would avoid US industry-wide tariffs on chips.
According to Gelsinger, “If you don’t have R&D in the US, you will not have semiconductor leadership in the US.” He pointed out that TSMC's research and development is still based in Taiwan and has no plans to move overseas.
TSMC has stated that its core R&D will stay in Taiwan. The company only plans to develop the process technology it already has in production in the US.
“Unless you’re designing the next-generation transistor technology in the US, you do not have leadership in the US," said Gelsinger, speaking in an interview in Silicon Valley this week.
Taiwan’s government has said it will ensure that the most advanced chipmaking technology stays in Taiwan while assisting TSMC in investing overseas. Economics Minister Kuo Jyh-huei (郭智輝) has said 2 nm and 1.6 nm processes will not go to the US next year.
Gelsinger said Trump’s tariff threats had been only “incrementally beneficial” by raising incentives for TSMC to move some production to the US. He added that the US has a lead in producing several AI technologies, despite missing out on cutting-edge semiconductor manufacturing technology.
