TSMC Faces US Government Cooperation Proposals: A Difficult Choice in a Geopolitical Game

Reports indicate that TSMC is negotiating with the US government on three potential cooperation proposals. These involve setting up an advanced packaging plant in the US, investing in Intel Foundry Services, or letting Intel handle the packaging process for its Arizona plant. While TSMC hasn't publicly commented, its lower capital budget and market reaction suggest a difficult choice: accepting cooperation could harm shareholder interests and lead to legal action; refusing could result in high tariffs and loss of US market share. TSMC's decision under geopolitical pressure will significantly impact the global semiconductor industry.