President Trump has been requesting that several manufacturers invest in the United States. Those who are doing otherwise might face tariffs from the government. Now, Samsung is reportedly planning to do an equity investment in Intel , in an attempt to appease the President.
Samsung reviews its plan to invest in Intel
Intel is one of the key players in boosting the local chip production of the United States. This comes after the TSMC, Taiwan’s chip manufacturer, announced its plan to set up a third manufacturing plant in the region. As per a media report, Samsung is now planning to make an equity investment in Intel. This could strengthen the country’s semiconductor industry and reduce dependence on overseas supply chains.
One of the Japanese investment firms, Softbank , had recently announced its plan to invest a whopping $2 billion in Intel. Just after the news came out, the company’s share jumped drastically. This investment would help the already struggling brand to find some relief. Intel has been facing rising competition from other global chipmakers.
Samsung’s investment could be a win-win for the US and Intel
After the news of the investment of Softbank became viral, Samsung is also considering an equity investment in Intel . The primary motive behind the investment is to appease President Trump and his administration. They have been putting strong pressure on global corporations to expand their footprint in the US.
Samsung has finalized reviewing its plan to invest in Intel, as the source reports. While the brand was considering the investment in other firms and areas as well, it is currently planning for the investment only in Intel due to political and economic advantages. It is also planning to do a partnership with the local packaging company, Amkor.
It would be worth watching how the economy of the United States will react to these investments. The semiconductor market is already in bloom as several companies, including Nvidia and AMD, have announced their plan to increase local investment.
