According to reports from Huaer Street Journal, the Trump administration not only invests in Intel, but also invests heavily in resources to fully assist the large US semiconductor manufacturer in producing advanced chips in the United States, including actively contacting potential major customers to boost the crystal foundry business. This plan previews that the US government will play a very important role in shaping Intel's future.
The agreement between Intel and Trump will be far more than the US government to acquire 10% of Intel's shares as simple as that of the US. The agreement will cover the US government's active contact with partners to ensure that Intel's advanced process, Intel 18A, and other products can be manufactured locally in the United States. The U.S. government has approved investments of Intel's Gauges of up to $8.9 billion and acquires some shares.
Intel High-level said that if the government does not provide significant incentive measures, it will be difficult to compete with NT$ and other companies. Executive Director Chen Liwu also said that if there is a lack of sufficient orders, Intel may have to give up the first step in the process. Under the strong pressure of the Trump administration, it is expected to prompt large factories such as Apple and NVIDIA to adopt Intel's advanced processes to help them compete with NT$1. Market news pointed out that South Korea's Samsung also considered the alliance with Intel to use Trump to support Intel to stabilize Samsung's status.
Intel Crystal Foundry Service (IFS) will highly appreciate the advanced Intel 18A processes in the future, especially its own products, such as the Panther Lake architecture CPU and Clearwater Forest Xeon server CPU. However, the Trump administration directly intervened, and the opportunity for Intel's advanced process to be adopted externally will be greatly improved.
There is a precedent for the government to intervene in the crystal OEM business. The Taiwan government is a major shareholder of Taiwan Electric Power, which shows that the government's decision to ensure the guarantee and reliability of OEM business and provide financial incentives is of great importance. Interestingly, Trump is highly interested in managing companies like Intel. He even said that he had a high degree of conflict with Intel executive director Chen Liwu because of his close relationship with Chinese memory in the past. This further strengthened the view that the US government will play a key role in Intel's future development.
Despite the promising prospects of the agreement, the industry still has doubts about the US government's deal with Intel, mainly because it seems that it is not wise to acquire only some companies' shares if there is no actual benefit. In addition, the Bank of America (BofA) also pointed out that Intel may face thinning of shares and boycott risks from China. Even so, with the strong support of the government, Intel is expected to regain its strength in the advanced manufacturing field and occupy a more advantageous position in the competition with the global chip foundry giant.