TLDR: Intel CEO Pat Gelsinger’s comments have strained the company’s relationship with TSMC, resulting in the loss of a 40% discount on chip production. Gelsinger’s remarks about Taiwan’s instability and reliance on Taiwanese fabs offended TSMC, leading them to revoke the discount.
* Based on the content by Anthony Garreffa below.
Intel CEO Pat Gelsinger made a “big mistake” when he took over as CEO three years ago, with a damning new report from Reuters stating that Gelsinger’s comments over the years have strained the relationship wtih TSMC, losing the company a lucrative 40% discount in the process.
In the write up by Reuters, the site points that out that Intel had a “sweet deal” going with TSMC, where it would make the chips that Intel designed, but couldn’t produce. TSMC was offering “deep discounts” to Intel, according to “four people with knowledge of the agreement”.