TSMC denies talks on investments or partnerships amid Intel rumors

Taipei [Taiwan] September 26 (ANI): Taiwan Semiconductor Manufacturing Co (TSMC) on Friday denied reports that it is in talks with any company regarding potential investments or partnerships, amid rumours linking the chipmaker to Intel’s financial troubles and a possible collaboration, reported Focus Taiwan.

According to a news report, the world’s largest contract chipmaker has dismissed a Wall Street Journal report stating that Intel had approached TSMC, soliciting investment in Intel’s manufacturing operations or a partnership.

The company stated that it has never entered into talks with any company regarding the establishment of a joint venture or the licensing or transfer of technology.

That stance was similar to previous statements made by TSMC Chairman CC Wei on several occasions when asked for comment on a potential partnership with Intel.

Rumours about TSMC’s possible acquisition of a stake in Intel have been circulating for months, reported the news platform.

After the Wall Street Journal report surfaced, TSMC’s American depositary receipts (ADRs) fell 1.44 per cent in the United States overnight, caused by fears that the Taiwanese chipmaker could lose the trust of its clients and see a fall in orders if it were to work with Intel, analysts said.

TSMC’s investments in Intel could help the American company enhance its technology, which would create a stronger competitor for TSMC. However, a partnership could also result in technology leaks from the Taiwanese side, analysts said.

Intel, which has struggled to keep pace with TSMC in semiconductor manufacturing technologies, has secured investments from the U.S. government, Japan’s SoftBank Group, and California-headquartered Nvidia Inc. to support Intel CEO Lip-Bu Tan’s bid to turn around the ailing chipmaker.

After the US government took a 10 per cent stake in Intel, the American chipmaker got US$2 billion in investment from Softbank in August and then a USD 5 billion pledge last week from Nvidia. (ANI)

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