Report: Trump pressures with tariffs, demanding Taiwan Semiconductor to invest in Intel
The Trump administration pressured Taiwan Semiconductor with tariffs, demanding it invest in Intel, potentially up to 49%. This move aims to help Intel reverse its losses for five consecutive quarters. Intel faces technological lag and market competition pressure; Taiwan Semiconductor has denied any intention to acquire Intel, but rumors persist. Market risks should be approached with caution, and investors should make decisions based on their own circumstances
In order to get Intel back on track, the Trump administration is using tariffs as leverage to pressure Taiwan Semiconductor to invest in Intel.
On Tuesday, media reports indicated that as a condition for lowering tariffs, the Trump administration is requiring Taiwan Semiconductor to jointly acquire up to 49% of Intel's shares. According to previous reports from CCTV News, President Trump recently signed an executive order establishing "reciprocal tariff" rates imposed on multiple countries and regions.
For a long time, Intel has been mired in "operational difficulties," suffering losses for five consecutive quarters starting from the third quarter of 2024, with its stock price plummeting. Technologically, it has lagged in process technology, missed the mobile chip market, and has relatively insufficient AI layout.
A previous article mentioned that Intel's key 18A process for manufacturing the next-generation laptop chip "Panther Lake" is facing setbacks, with its yield far below the level required for profitable mass production. This will directly impact Intel's revival plan and threaten its goal of attracting external customers and establishing credibility in its foundry business.
This requirement may provide potential hope for Intel, as there have been multiple rumors of "Taiwan Semiconductor acquiring Intel," but Taiwan Semiconductor had clearly denied any intention to form a joint venture or acquire Intel's wafer fabs during its 2024 earnings call.
Rumors of Taiwan Semiconductor's Stake in Intel Emerge Frequently
Media reports have previously suggested that Intel and Taiwan Semiconductor might reach an agreement on a "joint venture" for Intel's foundry division. Under this agreement, Taiwan Semiconductor would manage Intel's production facilities in the United States and might hold a 20% stake in Intel's foundry division.
For Taiwan Semiconductor to successfully manage Intel's facilities, it would need to obtain "full" management control, a process that could take years or even decades. Additionally, Taiwan Semiconductor's ambitions for expansion in the United States mean that cooperation with Intel will be a daunting task.
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