In the semiconductor space, Intel is still very dominant. The company’s chips can be found in desktop computers, laptops, and servers around the world. However, as the conversation shifts to mobile, Intel becomes less relevant. That space is dominated by the likes of Qualcomm. But the Trump administration doesn’t want Intel to fall, and a recent report suggests it will help the company with the production of advanced chips in the US.
Trump to help Intel’s advanced chips production in the US
According to an exclusive report from the Wall Street Journal, it claims that the Trump administration is looking into helping Intel with its advanced chips production in the US. As you might know, Trump is hoping to bring more manufacturing back to the US. Seeing as how semiconductors are an incredibly hot market right now, it makes sense.
Now, unlike Qualcomm, which relies heavily on TSMC for the production of its chips, Intel has its own foundry and fabrication facilities. The report claims that the US government’s interest in the company is more than just about acquiring a 10% stake in the company. They are also looking to bolster Intel’s cutting-edge processes, like 18A, in the US.
However, Intel has made it clear it needs huge incentives from the government if they are hoping to compete with TSMC. This report is interesting because of the change in tune.
Just recently, US President Donald Trump called on Intel’s CEO, Lip-Bu Tan, to be fired . However, a few days later, both sides made up with Trump singing the CEO’s praises .
Tariffs on imported semiconductors
Trump recently announced a plan to impose 100% tariffs on imported semiconductors . This is part of his bid to encourage companies, both local and foreign, to start building more in the US. This has resulted in companies like Samsung and TSMC to invest more heavily into its US operations .
While this will help companies escape the tariffs, there is also the question of cost. Obviously, labor costs in the US differ greatly compared to countries like Taiwan and China. Even if companies can avoid tariffs, it is possible that labor costs and manufacturing costs stateside could end up being as expensive, if not more.
