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Tag: TSMC

  • TSMC and Intel team up to run chip factories

    TSMC and Intel team up to run chip factories

    On April 3, 2025, exciting news broke about a possible partnership between Intel and TSMC, a key supplier for Apple. According to The Information, the two companies have made a basic deal to work together and manage Intel’s chip-making plants. TSMC would own 20% of this new joint company, while Intel and other U.S. chip businesses would hold the bigger share.

    As part of this plan, TSMC might share its know-how on building chips and even train Intel’s workers to use these methods. Talks are still going on, so the final setup isn’t set yet. Reports say the Trump administration pushed for this deal to help Intel recover and boost high-tech chip production in the U.S.

    Intel and TSMC have been rivals for a long time. Intel once powered Apple’s Macs, but since 2020, Apple switched to its own chips, made by TSMC. TSMC focuses only on making chips, not designing them, which has helped it zoom past Intel. Intel’s chip-making side has struggled—its chips cost more, and it produces less than TSMC. Some Intel leaders worry this deal could mean job cuts, as they might need to sell off old equipment or let go of engineers.

    Last year, Intel lost $18.8 billion, hit hard by a weak PC market and big spending on its factories. This partnership could be a lifeline, blending TSMC’s skills with Intel’s setup. While details are still fuzzy, it’s a big step that could shake up the chip world and affect companies like Apple, which rely on TSMC’s top-notch manufacturing. This move shows how the U.S. is working to strengthen its tech edge, and it’ll be interesting to see how it all plays out!

  • TSMC’s new plan might hurt U.S.-Made Apple Chips

    TSMC’s new plan might hurt U.S.-Made Apple Chips

    TSMC’s recent $100 billion promise to boost its U.S. operations grabbed attention, but it left out key details—like whether this cash is really new or just old promises repackaged. Even more surprising, some experts think this move could actually slow down efforts to make Apple chips in America. Here’s why.

    Where Things Started

    Back in 2022, Apple shared exciting news: it wanted chips stamped “Made in the USA.” This tied into the U.S. CHIPS Act, a big push to bring tech jobs home. TSMC stepped up, planning factories in Arizona. Some of those chips were meant for older Apple gadgets.

    But the road’s been bumpy. The first factory was supposed to start cranking out chips last year, but that got delayed to 2024. People also wondered if raw chips made in the U.S. would still need to zip back to Taiwan for finishing touches—something called “packaging.” Plus, there were grumbles about jobs. TSMC brought in many workers from Taiwan, sparking claims it wasn’t fully supporting American workers.

    What’s Up with the $100 Billion?

    The Trump team hyped up this $100 billion plan before TSMC even confirmed it, making it sound fresh. But since Arizona factories were always part of the vision, it’s hard to tell if this is extra money or just the same budget with a new label.

    One fresh twist? TSMC now says it’ll build U.S. packaging plants. Before, they planned to hand that job to another company, Amkor. This might just mean shifting work around in the U.S., not adding much new.

    A Setback for Apple Chips?

    Here’s the catch: Apple needs cutting-edge chips, and TSMC’s best tech stays in Taiwan. The U.S. plants were already set to make older-style chips, lagging behind Taiwan’s top factories. Now, analyst Ming-Chi Kuo says this new deal scraps one of the more advanced U.S. plants. Instead, TSMC’s adding a packaging site and a research hub.

    That could mean fewer chips for even Apple’s older devices. Kuo also warns the $100 billion isn’t locked in—it’s “flexible,” so TSMC might adjust based on how things go. In short, this big announcement might sound great, but it could leave U.S.-made Apple chips stuck in the past.