Intel CEO ran his mouth: lost a huge 40% discount from TSMC after remarks about Taiwan, China

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.

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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".

Reuters says that instead of Intel CEO Pat Gelsinger nurturing the relationship with TSMC -- with Gelsinger hoping to restore Intel's in-house manufacturing process -- ended up offending TSMC by calling out Taiwan's precarious relations with China. Gelsinger said in 2021: "You don't want all of your eggs in the basket of a Taiwan fab". However, in December 2021 encouraging US investment in US chipmakers, Gelsinger said: "Taiwan is not a stable place".

In the eye of the public, TSMC downplayed Gelsinger's comments, with TSMC founder C.C. Wei calling the Intel CEO "a bit rude". But behind closed doors, TSMC said it would no longer be honoring the discount it offered Intel, with Reuters' sources saying that about 40% off the $23,000 3nm wafers on which TSMC would be fabbing for Intel.

Intel was forced to pay the full price, which saw its profit margins disappearing from the deal. Reuters says that Intel "declined to make Gelsinger available for an interview" which surprises no one. You can read the entire damning piece over at Reuters.

This news really makes those stories I've got linked to above, really stand out now. We know Intel is in trouble, but sheesh...