Pure extortion
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.
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
Trump is short-sighted enough to tell Taiwan to go fuck themselves and TSMC/Taiwan know it.
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.
Don’t worry, Intel will still find a way to be a horrible company to invest in
You ever known someone very capable and independent, get involved with an abusive and manipulative relationship? Just run, leave them and don’t look back!
What would that do to the stock btw?
Free markets and all that…
