It seems like the US government is focused on Intel getting back on track, as the chipmaker has been part of the ongoing trade negotiations with Taiwan.
Before we dive into this, it is essential to take this rumor with a grain of salt, considering that information within the Taiwanese supply chain tends to change dramatically. Based on a report by UDN, it is claimed that the Trump administration is looking for a breakthrough for Intel, and they are demanding that Taiwan get a 49% stake in Intel, in order for the trade deal to proceed further. More importantly, the other option is to invest $400 billion into the US, which is a much more costly venture, so for Taiwan and TSMC, an Intel stake acquisition actually makes sense here.
Reports of an Intel buyout have been evolving ever since Gelsinger stepped down. More importantly, the US government is eager to give Taiwan's TSMC control of the American chipmaker, considering the expertise it will bring on board. There were rumors that Intel's chip facilities would be operated by TSMC and that the firm would work with Team Blue to enhance its nodes. Given that the Trump administration has made it a priority to get US chip firms up and running, an Intel-TSMC partnership could be an aftermath of the Taiwan deal.
Taiwan is currently working with the US to lower the tariff rates to 15%, similar to that of the EU and Japan. This means that the nation needs to make large-scale investments, which are rumored to be a whopping $400 billion. Whereas, acquiring a stake in Intel would cost TSMC much less, but at the same time, would make the American chip supply chain a lot more complex, since the Taiwan chip giant has been dominating it for several months now.
In a previous report, we discussed how a TSMC-Intel merger is pointless for the chip industry, and it seems that this is what is holding Taiwan back for now. Since the trade negotiations are ongoing, we can expect the terms to change dramatically, but for now, Intel will have a role in a deal with Taiwan.