Taiwan Semiconductor Manufacturing Company (
#TSMC ) is reportedly exploring the possibility of taking over operations at Intelโs semiconductor plants in the United States. Sources indicate that this concept originated from a member of former President Donald Trumpโs team, aligning with his administrationโs vision of revitalizing domestic manufacturing and ensuring American dominance in advanced technologies. While discussions have been initiated between TSMC and Trumpโs team, Intelโs stance on this potential arrangement remains uncertain.
๐๐๐ซ๐ฅ๐ฒ-๐๐ญ๐๐ ๐ ๐๐ข๐ฌ๐๐ฎ๐ฌ๐ฌ๐ข๐จ๐ง๐ฌ ๐๐ง๐ ๐๐จ๐ญ๐๐ง๐ญ๐ข๐๐ฅ ๐๐จ๐๐๐๐ฅ๐จ๐๐ค๐ฌ๐
Insiders reveal that talks are still in their preliminary phase, with no immediate developments expected. The specifics of a potential collaboration are yet to be determined, but one possibility under consideration is TSMC leveraging Intelโs US-based production facilities. This move is being explored as Intel grapples with financial setbacks, workforce reductions, and scaled-back expansion plans. Reports suggest that if a deal materializes, major US chip designers and the government could acquire equity stakes, ensuring Intel remains partially under American control rather than fully managed by a foreign entity. Despite TSMCโs significant role in the semiconductor industryโsupplying leading companies like Apple and Nvidiaโpolitical resistance remains a major challenge. The Biden administration had previously explored a partnership between Intel and GlobalFoundries, though that plan fell apart due to financial constraints.
๐๐ง๐ญ๐๐ฅโ๐ฌ ๐๐ญ๐ซ๐ฎ๐ ๐ ๐ฅ๐๐ฌ ๐๐ง๐ ๐๐๐ซ๐ค๐๐ญ ๐๐ฆ๐ฉ๐๐๐ญ ๐ฅ
Intelโs stock declined following reports of the discussions, closing at $23.60 after a 2.2% drop, adding to an earlier 5.3% loss. Over the past five years, the company has experienced significant market setbacks despite its strong presence in the PC and server processor industries. Under former CEO Pat Gelsinger, Intel secured substantial government funding, including $7.9 billion for manufacturing projects and a $3 billion contract to supply chips to the US military. However, these initiatives have not translated into widespread industry adoption, especially at its new Ohio facility, further intensifying its financial struggles. Gelsingerโs departure in December reflected the boardโs dissatisfaction with Intelโs turnaround strategy, prompting discussions on alternative contingency plans in Washington.
๐จ๐๐๐จ๐ฅ๐ข๐ญ๐ข๐๐๐ฅ ๐๐ฆ๐ฉ๐ฅ๐ข๐๐๐ญ๐ข๐จ๐ง๐ฌ ๐๐ง๐ ๐
๐ฎ๐ญ๐ฎ๐ซ๐ ๐๐ซ๐จ๐ฌ๐ฉ๐๐๐ญ๐ฌ
While Bidenโs administration has been hesitant to actively broker a deal, Trumpโs team appears more willing to explore options. Although Trump has previously criticized Taiwan for allegedly taking advantage of US semiconductor technology, he might reconsider his stance given TSMCโs increasing engagement with American stakeholders. Whether TSMC ultimately takes over Intelโs operations or a different strategic partnership emerges, this development underscores the critical role of semiconductor manufacturing in global economic and political dynamics. The coming months will determine if this potential deal gains traction or faces regulatory and political roadblocks.
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