The Trump administration may not support a foreign firm operating Intel’s (INTC.O) US chip factories, according to a White House official. This comes after reports that Taiwan-based TSMC was considering taking a controlling stake in Intel’s factories at the President’s request.
The White House official stated that while the Trump administration supports foreign companies investing and building in the US, it is unlikely to support a foreign firm running Intel’s factories. This stance raises questions about how such an arrangement could impact Intel’s key strategy of manufacturing its own chips.
Intel has struggled to restore its lost chipmaking glory, partly due to pouring billions of dollars into becoming a contract chip manufacturer. The company’s shares have been affected by this transformation, closing down 2.2% on Friday.
A deal between TSMC and Intel could provide financial relief to the US chipmaker, but it would require significant concessions from both parties. Such an arrangement may also impact Intel’s ability to design and manufacture its own chips.
The Trump administration’s stance on this matter comes as they explore plans for reciprocal tariffs on every country taxing US imports, which could raise prospects for a global trade war. The success of Intel’s 18A chipmaking technology is crucial to the company’s manufacturing ambitions.
TSMC and Intel declined to comment on the matter, leaving further details uncertain.
Source: https://www.reuters.com/technology/tsmc-considering-running-intels-us-factories-after-trump-team-request-bloomberg-2025-02-14