Intel, the fallen silicon valley icon that tries to restore its reputation as a semiconductor company in America, works with the Trump administration on a plan to deliver the operation of chips to the chips to a giant Taiwanese competitor.
Over the past few months, Frank Yeniri, the interim CEO of Intel, has spoken with management officials and leaders of the semiconductor manufacturer in Taiwan about a deal that separates the sick Intel work of its design in the design of semiconductors, according to four people with the knowledge of the plan, who They spoke on the condition that his identity is not disclosed.
He said that TSMC, which produces an estimated 90 percent of the most advanced semiconductors in the world, will take control of the Intel manufacturing business and take over the majority stake in business along with a consortium from investors who can include private stock companies and other technology companies. .
The Trump TSMC administration encouraged this deal. Two people familiar with the discussions said that Howard Lootnick, President Trump’s candidate for the Minister of Trade, participated in the talks and considered them one of the most challenges he faces in his new job.
It is not clear how much Intel works in manufacturing that will take on TSMC or the amount of money that the Taiwanese company will invest. The people said that the deal may be limited to the local Intel factories, in states, including the state of Oregon, Arizona and New Mexico, or also include facilities in countries such as Ireland and Israel.
Intel Action prospects strained After failing to develop a smartphone and artificial intelligence slices. Although the government’s best efforts to revive the company Promise it with billions of dollars Through the Biden Administration Law, Intel continued to struggle.
Intel and TSMC refused to comment. Mr. Lutnick did not respond to a request for comment.
Two people familiar with the talks said that the Intel Council approached TSMC to measure its interest in a kind of partnership. In January, the CEO of TSMC, CC Wei met separately with Mr. Lutnick and MR. Yeari to discuss how to tie.
Mr. Yenik said to Mr. Lottennik regularly about the idea since then, three of these people said. The Intel President’s interest in the company’s incidence of the fiancée interested in obtaining Intel products, including Qualcomm. Qualcomm spokeswoman rejected the comment.
Some details of the discussions were reported before DigitimesTaiwanese news port, and Bloomberg.
The question now is whether the Trump administration believes that the sick national champion like Intel is better at the hands of a foreign company or if the administration needs to search for another solution.
“Even with the support of the potential US government from the chips law, officials are eager to see the counterattack and lead the advanced manufacturing renaissance in the United States. Industry,” said Paul Triolo, a partner in the Ulbright Stunebridge Group, which tracks.
Seeking negotiations are questions about Mr. Trump’s approach to the chips and Taiwan, which is sharply different from the strategy of former President Joseph R. Biden Junior. Mr. Trump has criticized the Biden administration investments in manufacturing local chips, He threatened to impose a tariff on foreign -made chipsTaiwan is accused of stealing the semiconductor industry away from the United States and interrogated the US military support to the island, which seeks to defend itself against Beijing’s attack.
In statements to Republican lawmakers in late January, Mr. Trump said that a large tariff, not subsidies, was all required to compel chip companies to return to the United States.
The president said: “We want them to return, and we do not want to give them billions of dollars such as this funny program that Biden has,” the president said.
At the Senate confirmation session on January 29, It seems that Mr. Lootnick is walking an accurate line On the chips program. He described it as “necessary and important” and “preaching introduction” to re -manufacturing to the United States. But Mr. Lootnick rejected the explicit commitment to honor the contracts that companies have already signed with the government.
To clarify Mr. Trump, Taiwanese officials and businessmen Relationships have been planted With people in its orbit, the new floating deals in the gas sector and try to explain how the manufacture of semiconductors benefit the United States.
Taiwan officials are also watching the talks on Intel’s future. For Taiwan, TSMC’s dominance of advanced chips has become what some commentators call the “silicon shield” that deter military action by China and encourage support from the United States.
The head of Taiwan, Lay Cheng T, said on Friday that his government will work with semiconductor companies on the island to develop a strategy that deals with the grievances of Mr. Trump while protecting the role of Taiwan in the chips sector.
“The Taiwan government will be in mutual contact and discussions with the semiconductor sector to formulate the correct strategy, then there will be other deliberations about the proposals with the United States,” Mr. Lay said at a press conference.
Stacy Rachton, a semiconductor analyst at Bernstein Research, said TSMC can address Mr. Trump simply build more manufacturing capabilities in the United States. TSMC, which Receive up to $ 6.6 billion in grants From the chips law, it builds three factories in Arizona and has the ability to expand there.
The idea of dismantling Intel talks about the change in the company’s wealth. It was founded in 1968, and it became the most valuable semiconductor company in the world by designing and manufacturing chips for personal computers and data centers. But the company has struggled in recent years to innovate and relinquish competitors such as NVIDIA, the dominant artificial intelligence maker.
The Promise of Gelsiner, which was appointed CEO of Intel in 2021, promised to transfer the company by stimulating its work in manufacturing, but the effort stumbles. In November, The Intel Council forced Gelsiner to resign.
Intel Manufacturing, which is called Intel Foundry, recorded an operating loss of $ 13.4 billion in 2024, as sales of customers decreased by 60 percent. Last year, the company said it is planning to create business Independent subsidiary.
Patrick Moraid, founder of MOUR Insights and Strategy, a technical research company, said that the price of the Intel share is approximately 50 percent over the past year, the Intel division can make it vulnerable to acquisition.
“Intel, as we know, will stop exist,” he said. “The absolute end will be for an era.”
Chris Bacli She contributed to the reports from Taipei, Taiwan.
