TSMC cancels Intel discounts: How the CEO's careless words led to financial losses
Disagreements between Intel and TSMC led to the loss of significant discounts for the American company due to careless statements by its CEO about the geopolitical risks associated with Taiwan.
Tech giants' conflict
Unfortunate comments from Intel CEO
According to the agency Reuters, TSMC offered Intel a significant 40% discount on the production of chips using the 3-nanometer process technology. However, the Taiwanese company withdrew the proposal following public statements by Intel CEO Pat Gelsinger about the risks associated with concentrating chip production in Taiwan.
Intel Strategy and Collaboration with TSMC
Since Gelsinger's appointment as CEO, Intel has focused on regaining its leadership in chip manufacturing and creating a contract manufacturing division to compete with TSMC. At the same time, Intel continues to cooperate with the Taiwanese company in the production of its own chips.
Lost Profit and Impact
The removal of the TSMC discount forced Intel to pay full price for 3nm products, which negatively impacted company profits. In addition, insiders report Gelsinger's overly optimistic public statements regarding Intel's artificial intelligence chip sales, which did not meet the company's internal expectations.
Problems with 18A Process Technology
According to Reuters, there are concerns about possible delays with Intel's 18A Process Technology. The publication's sources claim that the company's clients doubt the 18A's readiness for mass production in 2026. It is also reported that major players such as Qualcomm and Apple have abandoned the use of this process technology due to Intel's problems.
Glossary
- Intel is an American corporation, the largest manufacturer of microprocessors
- TSMC - Taiwan Semiconductor Manufacturing Company, a leading semiconductor manufacturer
- Pat Gelsinger - CEO of Intel since 2021
- Morris Chang - Founder of TSMC
- Process 18A - Advanced Intel Chip Manufacturing Technology
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Discussion of the topic – TSMC cancels Intel discounts: How the CEO's careless words led to financial losses
Intel CEO Pat Gelsinger made comments about TSMC's risks with China, leading to a deterioration in relations between the companies and the reversal of significant discounts for Intel.
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Isabella
Wow, what passions there are in the world of technology! 😮 Looks like Pat Gelsinger was too open and now Intel is paying for it. I wonder how this will affect the chip market in the long term?
Hans
Yes, Isabella, the situation is not easy. But I think Intel can handle it. They have a wealth of experience and resources. Perhaps this will even push them to more actively develop their own technologies. 💪
Amelie
I agree with Hans! Intel is an industry giant, they will find a way. I'm more concerned about the situation with AI chips. If expectations are too high, it can negatively impact the entire industry. 🤖💔
Carlos
Amelie, you're right about the AI. But I think that even if Intel falls behind, other companies will pick up the baton. The same TSMC is clearly not asleep. Competition is always good for progress! 🚀
Viktor
Blah blah blah, another hype around these chips and nanometers of yours. Previously, computers worked without any AI and atomic-sized processors, and nothing, they lived normally. All this is pumping money out of the pockets of consumers, nothing more.
Isabella
Viktor, I understand your skepticism, but technology really improves our lives. Take medicine or environmentally friendly energy sources - without modern chips this would be impossible. 🌿🏥
Olivier
And I am surprised by the reaction of Qualcomm and Apple. If they abandon the 18A process technology, it could be a major blow to Intel's plans. I wonder what alternatives they are considering? 🤔
Marta
Olivier, perhaps they are just playing it safe. Either way, this situation shows how important transparency and trust are in the tech sector. Hopefully Intel will learn its lessons and become more cautious in its public statements. 📊🤝