The Trump administration is ‘unlikely’ to support TSMC’s control over Intel’s U.S. chip factories: Report – Intel (NASDAQ:INTC), Taiwan Semiconductor (NYSE:TSM)

It is reported that the Trump administration is unlikely to return Taiwan Semiconductor Manufacturing Company TSM take over Intel CorporationINTC Our chip factory.

what happened: TSMC, the world’s largest chip maker, is considering buying control of Intel’s U.S. factory at the request of the former president Donald Trumpaccording to Bloomberg.

But a White House official told Reuters that the Trump administration welcomes foreign investment and construction in the United States, but is “unlikely” to support a foreign company that runs Intel factories.

White House officials have not publicly confirmed whether any meetings have occurred or whether potential agreements have ever been discussed.

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Intel has been working to restore lost chip production visibility and invest billions of dollars to become a contract chip maker, a transformation that has not yet been realized.

If TSMC takes over operations at the Intel plant, it will face the challenge of overhauling the existing processes of U.S. chip manufacturers.

Since each semiconductor manufacturer follows a unique production method, TSMC may have to adapt Intel’s facilities to its own standards and may need to disclose proprietary technology to Intel staff.

Why it matters: The Trump administration’s stance on TSMC’s potential control over Intel’s U.S. factories is driven by widespread strengthening of domestic semiconductor production.

The U.S. Chip and Science Act, which aims to strengthen domestic semiconductor production with a subsidy worth $39 billion, was reportedly renegotiated by the White House, which could lead to delays in certain semiconductor spending.

Meanwhile, Taiwan Semiconductor is seeking to expand its operations in the United States driven by greater investment and advanced chip production in Taiwan.

The company is investing $65 billion in Arizona to coincide with Taiwan’s president Lai Ching-te’s plan, a move that will be in line with the U.S. investment and deal more

Intel shares fell 2.2% on Friday, while U.S.-listed TSMC shares rose about 1%, according to Benzinga Pro.

JP Morgan, Stifel and Truist Securities released 3 of the most outstanding analyst ratings on January 31 with their average price targets of JP Morgan, Stifel and Truist Securities $21.67.

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Disclaimer: The content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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