Former Intel Boss Pat Gelsinger Says Trump’s Tariffs Helpful For US Chip Comeback, But More Than TSMC’s $100 Billion Pledge Needed — Reveals the One Missing Piece – Broadcom (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD)

Former Intel Corp INTC CEO Pat Gelsinger has said that America’s plan to restore chipmaking dominance needs more than massive investments—it needs to bring core innovation back home.

What Happened: In a new interview this week, Gelsinger said Taiwan Semiconductor Manufacturing Co.’s TSM $100 billion commitment to expand chip production in the U.S. is a positive step but ultimately insufficient, reported the Financial Times.

“If you don’t have R&D in the U.S., you will not have semiconductor leadership in the U.S.,” he stated, adding, “All of the R&D work of TSMC is in Taiwan, and they haven’t made any announcements to move that.”

Gelsinger, now a partner at deep-tech VC firm Playground Global, added that President Donald Trump’s tariff threats had been “incrementally beneficial” by nudging companies like TSMC to invest in the U.S. 

However, he warned that without relocating core research operations, the U.S. would remain dependent. “Unless you’re designing the next-generation transistor technology in the U.S., you do not have leadership in the U.S.”

See Also: Intel ‘Will Be Fighting For Every Socket’ In The Data Center Business, Says Co-CEO Michelle Holthaus As Competition From AMD, Nvidia Heats Up

Why It’s Important: The Biden and Trump administrations have both sought to reduce U.S. reliance on foreign chip supply chains.

TSMC’s accelerated U.S. expansion was reportedly driven by geopolitical pressure, supply chain security, and customer demands. This expansion, however, poses significant risks for Taiwan, as experts warn that Taipei must plan beyond its ‘Silicon Shield’ amid growing threats from China.

However, Taiwan’s government has been closely examining TSMC’s overseas ventures, stating that joint ventures abroad require official approval.

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Previously, it was reported that TSMC has proposed a joint venture with U.S. chip designers Nvidia Corp. NVDA, Advanced Micro Devices AMD, and Broadcom Inc. AVGO to operate Intel’s factories.

During the interview, the former Intel CEO also declined to comment on whether he had clashed with the company’s board over strategy but suggested he had lost their confidence before completing his five-year plan.

“I wasn’t done with the five-plus years when the board made a directional change,” he stated.

Earlier this month, it was reported that Intel’s new CEO, Lip-Bu Tan, is planning a major overhaul, including potential staff cuts to address what he perceives as a slow-moving and bloated middle management layer.

Price Action: TSMC’s stock dipped 0.40% in after-hours trading to $172.81. Earlier on Wednesday, it closed at $173.50, marking a 4.09% drop during regular trading. Year-to-date, the company’s shares have fallen 13.93%, according to Benzinga Pro data.

Benzinga’s Edge Rankings give TSMC an 82.36% growth rating. Want to see how it compares to other companies? Click here for the full breakdown.

Photo Courtesy: drserg On Shutterstock.com

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.