Before Gelsinger’s public statements, TSMC offered Intel a 40 per cent discount on producing one wafer, which reduced its cost from $23,000 to $14,000. However, after Gelsinger began to insist on the geopolitical risks of manufacturing chips in Taiwan and advocated for subsidies for developing semiconductor manufacturing in the US, relations between the companies became strained.

TSMC withdrew the offer, and now Intel is forced to pay full price for 3nm wafers, which significantly hit the financial indicators.

Gelsinger’s comments also led to a public falling out with TSMC founder Morris Chang, who responded sharply to the criticism, pointing to the emotional nature of Gelsinger’s remarks and their motivation for his pursuit of Intel subsidies.

 Gelsinger’s position caused internal rifts at Intel, including the rejection of a major deal with Alphabet after paying a fine to settle the dispute.

In addition, there is growing doubt among Intel’s customers and suppliers about its readiness to launch its 18A process by 2026.

That jeopardises Intel’s plans to attract major customers such as Qualcomm and Apple, which have backed out of the process due to concerns about timing and quality. These issues could increase pressure on Intel in its efforts to regain leadership in the semiconductor industry and compete with giants such as TSMC.