Chip execs get mad

Hi, this is Debby in Taipei. Things are getting awkward between chip giants Intel and TSMC. But first… Today’s top tech news: Samsung is get [View in browser]( [Bloomberg]( Hi, this is Debby in Taipei. Things are getting awkward between chip giants Intel and TSMC. But first… Today’s top tech news: - Samsung is getting [new leadership]( - Intel will [publicly list shares]( of its Mobileye self-driving car business - There are [more walkouts]( at Activision Blizzard, this time over job cuts Chip beef In the U.S., there’s been a lot of talk about supporting American chipmaking. It’s a matter of [national security](, politicians have become fond of saying, not to mention a way to address future shortages. But the chip industry is highly globalized, meaning that this new patriotic fervor has led to some uncomfortable moments — particularly for the global leader, Taiwan Semiconductor Manufacturing Co. For months, Santa Clara, California-based Intel Corp. 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, TSMC 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.” TSMC is currently building a $12 billion manufacturing facility in Arizona, with a plan to mass produce advanced 5-nanometer chips by 2024 in the state. Meanwhile, South Korea’s Samsung Electronics Co. is planning a new $17 billion fab in Texas. Both of these companies have received considerable support from U.S. authorities and could stand to benefit from the CHIPS Act, despite Intel’s protestations. During the forum, Liu pointed out the deeply global nature of the chip industry. Some semiconductor chemicals required by Intel are shipped to the U.S. by Taiwanese suppliers, he said. In other words, even made-in-the-U.S.A. products still rely on the outside world. TSMC and Intel have long had a complicated relationship. On Nov. 29, TSMC founder Morris Chang had a birthday party, attended by Liu and the company’s chief executive officer, C.C. Wei. Chang said during the first 10 to 15 years of TSMC’s existence, TSMC looked up to Intel like a god. Now, Chang noted, TSMC’s market cap has exceeded that of Intel’s, according to a person present at the event. Chang suggested that this was no reason for complacency. “Uneasy lies the head that wears a crown,” he said, according to the person who was there. “I have confidence in you and you should continue to stay uneasy.” —[Debby Wu](mailto:dwu278@bloomberg.net) If you read one thing While companies and governments push to keep supply chains running, ordinary people are the ones putting their lives at risk. How the race for more chips [turned deadly in Malaysia](. Here’s what you need to know Former Lyft Chief Financial Officer Brian Roberts joins [crypto startup OpenSea](. Tesla stock has had a bumpy ride after a [report that the]( Securities and Exchange Commission opened an investigation into the company over whistle-blower claims on solar panel defects. There’s a lot of money in NFTs right now. But it’s mostly only going to a [small handful of people](. Follow Us More from Bloomberg Dig gadgets or video games? [Sign up for Power On]( to get Apple scoops, consumer tech news and more in your inbox on Sundays. [Sign up for Game On]( to go deep inside the video game business, delivered on Fridays. Why not try both? Like Fully Charged? | [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Fully Charged newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](