Aug 06, 2025 13:15:00

Reports say the US is demanding TSMC acquire 49% of Intel shares as a condition for lowering tariffs on Taiwan from 20%

The US government has been increasing tariffs on trade with various countries, and on July 31, 2025, President Donald Trump

signed an executive order establishing new tariff rates. Meanwhile, Taiwanese media reported that President Trump is demanding that TSMC , a major semiconductor foundry, acquire a 49% stake in Intel as a condition for lowering tariffs on Taiwan from 20%.

1/Taiwan and Taiwan trade difference exceeds Japan-Korea
https://www.mnews.tw/story/mm-20250804fin003

Desperate measures to save Intel: US reportedly forcing TSMC to buy 49% stake in Intel to secure tariff relief for Taiwan - NotebookCheck.net News
https://www.notebookcheck.net/Desperate-measures-to-save-Intel-US-reportedly-forcing-TSMC-to-buy-49-stake-in-Intel-to-secure-tariff-relief-for-Taiwan.1079424.0.html

The US government announced new tariffs on July 31, imposing a 15% tariff on Japan. The tariff rates are influenced by the trade surplus between the US and Japan, and a 20% tariff will be imposed on Taiwan, which has a particularly large trade surplus with the US.

Taiwanese media outlet mnews.tw reports that the 20% tariff has many export business managers in a state of shock, and that coupled with the rising exchange rate, it could deal a major blow to Taiwan's industry. Hsu Shu-bo, chairman of the National Federation of Commerce, which brings together Taiwan's chambers of commerce and industry associations, said, 'The 20% tariff is temporary, but any subsequent adjustments will depend on what Taiwan has in its negotiations with the US. A 5% difference would cause significant damage.'

An investigation by mnews.tw found that the biggest obstacle in negotiations between the US and Taiwan is TSMC, the world's largest semiconductor foundry. One technology industry veteran commented, 'From the beginning, semiconductors, and TSMC in particular, have been President Trump's top priority. It remains up to TSMC Chairman Wei Che-chia to decide whether Taiwan can offer terms that satisfy President Trump.'

President Trump has reportedly demanded that TSMC 'acquire 49% of Intel's shares' and 'make an additional $400 billion (about 59 trillion yen) investment in the United States,' an amount that Chairman Wei said is unacceptable.

'Of course this is unacceptable. First of all, even the EU has only invested $600 billion in the US. Why should the future of a private company be ruined by politics? TSMC is Taiwan's guardian angel, and we must do everything we can to maintain its competitiveness, because it is linked to Taiwan's security. And looking at the bigger picture, President Trump's term may only last three years,' said Chen Huiming, a veteran semiconductor analyst.

Hardware media outlet Notebookcheck points out that President Trump's request is intended to prevent Intel's collapse. Intel has been experiencing poor performance in recent years, and in August 2024, it announced a cost-cutting plan to cut about 15,000 employees, or 15% of its total workforce, and also

announced plans to reduce its workforce from 99,500 at the end of 2024 to 75,000 by the end of 2025.

Despite Intel's pivotal role in the nation's semiconductor manufacturing program and the billions of dollars in federal subsidies it receives, the outlook for Intel's turnaround remains dim.

'In essence, the US government appears to be pressuring TSMC to acquire a significant stake in Intel, with the aim of providing much-needed funding to Intel and maintaining the US government's domestic semiconductor supply chain plan. However, it is unlikely that TSMC will agree to this proposal,' Notebookcheck said.