Trump can’t support a foreign company that manages Intel’s American factories -says the White House official

admin4 weeks ago

0 0 3 minutes read

Arsheeya Bajwa

(Reuters) -President Donald Trump may not support Intel factories of US chips operated by a foreign subject, a white house officer for Reuters told.

The comment was the answer to Bloomberg’s report that Taiwanese TSMC, the world’s largest manufacturer of chips, was considering taking the control share in the Intel factories at Trump’s request.

The White House official said Trump’s administration supports foreign companies that invest and build in the US, but that it is “a little faithful” to support the foreign company operating the Intel factories.

Earlier, Bloomberg reported that Trump’s team launched an idea of an agreement between the two companies at recent meetings with TSMC officials that they were receptive, citing a person familiar with the issue.

The White House official did not immediately comment on whether Trump’s team met with companies and launched the idea of such an agreement. The official did not immediately answer further questions about whether TSMC could be involved in the Intel Factory through a common entity based in the United States.

Such an agreement, which is still uncertain, could throw the financial life of Intel, who struggled to restore lost glory to make chips, because he failed to use AI flourishing and poured billions of dollars at the station manufacturer of the chip contract – a transformation that is yet to be needed achieve.

Intel shares closed 2.2%on Friday, while TSMC shares closed about 1%in the USMC census.

It is unclear whether the Intel is open to the transaction, according to Bloomberg, and the arrangement may include that the main American chip designers take the shares in capital, along with the support of the US government. The report added that this means that the venture will not only be owned by a foreign company.

Earlier in the week, the Baird research company posted a note stating that the Intel Factory could be thrown into a new entity, in common ownership of the Intel -A TSMC, and TSMC engineers help ensure that the factories are sustainable.

“Intel would benefit from a significant mitigation of cash flow and focus on the design and platform solutions that go forward, while the sustainable FAB could finally attract the key fabless companies to diversify in the production mode that can be dependent on the geo,” Baird said in the note.

Such a job would need deep concessions on both sides.

If TSMC accepts the arrangement to launch Intel’s factories, he should make significant changes in the business of the American chips manufacturer because each chip manufacturer has different methods and techniques for operating factories.

In order to manage the Intel Fabs, TSMC should also discover some of its ownership techniques and processes of Intel employees.

For his part, Intel should admit the fact that his production operations would become a completely different entity.

Also, TSMC completely manages the Intel factories known as Fabs, also asking questions about Intel’s key strategy for the production of chips he designed. Most chips are “Fabless” – outsourcing like TSMC, which offers considerable cost savings.

“If Intel moves this way, focus on being a semiconductor design company. You look more like Broadco or Marvell or AMD,” said Wedbush Securies Matthew Bryson analyst.

TSMC and Intel refused to comment.

Tariff exemption?

Intel is one of the largest users of pushing the United States to the main critical production of chips.

According to the previous administration, the American Trade Department in November announced that it had completed a state subsidy of $ 7.86 billion for Intel.

The company is among several chips that designs and produce semi -leaders. TSMC is now the world’s largest contractor manufacturer, which boasts a market estimate about eight times higher than Intel.

TAIVAN CUSTOMER CLIPS Treaty include leader AI Chip Nvidia and AMD, which is Intel’s fierce rival in computers and servers markets.

“Ironically, enough, TSMC could look for some tariff exemptions to happen and enable the effective and effective flow of equipment and materials,” said Michael Ashley Schulman, director of an investment in Running Point Capital.

Trump on Thursday borrowed his economic team to design plans for reciprocal tariffs to every country that taxes American imports, enhancing the prospects for the global trade war.

Former Intel Director Pat Gelsinger, who was overthrown last year, set heavenly expectations for Intel’s production and AI capabilities among the main clients, but fell in loss or cancellation contracts, Reuters reported earlier.

Intel shares lost about 60% of their value last year because the capital intense offer for strengthening production – a strategy advocated by Gelsinger – tensed the company’s cash flow and eventually led to reduce about 15% of its workforce.

The success of Intel’s 18A technology for the development of chips, scheduled for this year, is crucial for the company’s production ambitions.

(Reporting Arsheey Bajwa, Akash I also hide Ananya Mariam Rajesh in Bengalur, Max A. Cherney and Stephen Nellis in San Francisco and Juby Babu in Mexico City; Mounting Anil D’Olva, Ken Li and Sayantani Ghosh)

Source link