The Trump administration is seeking to strengthen Intel’s domestic semiconductor manufacturing by proposing a deal that would have Taiwan Semiconductor Manufacturing Co. (TSMC) buy a majority stake in its factory business, according to reports.
The plan aims to bolster the domestic chip industry and ensure companies continue making advanced computer chips in the US. However, experts say any deal would be complex and might not benefit either company.
Intel finalized a $7.9 billion federal subsidy deal with the Biden administration last November but hasn’t received most of the funding yet. The Trump administration could use this leverage to encourage TSMC to participate or offer more financial assistance to complete a deal.
If successful, the agreement would have significant implications for Oregon, where Intel is the state’s largest corporate employer and engineers each new generation of manufacturing process technology at a research factory in Hillsboro.
Experts warn that if TSMC were to take over Intel’s factories, it might prefer to continue doing its most advanced work in Taiwan, potentially undermining the Trump administration’s goal of bolstering the domestic chip industry.
Source: https://www.oregonlive.com/silicon-forest/2025/02/tsmc-would-take-over-intels-factories-in-plan-pushed-by-trump-administration-bloomberg-reports.html