TSMC and Intel Get Into a Rare Public Spat Over U.S. Chipmaking

$Intel (INTC.US)$ Chief Executive Officer Pat Gelsinger has been saying that it’s risky for the U.S. to rely too heavily on Asian chipmakers. He’s argued that the American government should only subsidize domestic players with the new $52 billion CHIPS Act. Gelsinger hammered away at the same point again last Wednesday, saying that China’s military threat against Taiwan makes the island “unstable.”

On Friday, $Taiwan Semiconductor (TSM.US)$ fired back. It was the first time that I, or any experts I talk with, can recall the Taiwanese giant admonishing a customer. “Not too many people will believe what Intel says,” TSMC Chairman Mark Liu told reporters on the sideline of a tech forum in Taipei. He added that TSMC does not attack its “peers.” Previously, TSMC executives have almost always described Intel as a “customer” rather than a “peer,” as a show of respect.

“It will be very negative for the United States to subsidize only American companies,” Liu said. “Unlike Intel, TSMC is very positive about non-U.S. chipmakers expanding capacity in America. It is a great thing. This shows our decision two years ago [to build a new fab in Arizona] is correct.”