Samsung Aims to Attract Trump Administration with New Intel Investment Following Softbank Deal, Reports Indicate

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Samsung Looks to Strengthen U. S.Chip Production Through Potential Intel Investment

Korean tech powerhouse Samsung is contemplating an equity investment in Intel, aligning with President Trump’s initiatives aimed at bolstering support for the struggling American semiconductor giant. Intel has become pivotal in the administration’s strategy to enhance domestic chip manufacturing, being the sole U. S.entity capable of high-end chip production.

This week saw a notable surge in Intel’s stock value following Softbank’s declaration of a $2 billion investment into the company. While there was initial optimism surrounding Intel’s stock after the appointment of CEO Lip-Bu Tan, investor confidence remains volatile. Many investors capitalized on speculation about a potential spin-off of its foundry operations, yet worries regarding slow demand for advanced chip fabrication and possible significant write-offs have led to market hesitance.

Following a 7% decline in its stock amidst a broader tech sell-off, news surfaced indicating the Trump administration’s consideration of converting Intel’s CHIPS Act funds into equity stakes. This development sparked concerns over equity dilution for a company grappling with its earnings capacity given the high costs associated with chip production agreements.

In light of Softbank’s recent move, South Korean media outlets report that Samsung aims to establish a stake in Intel. This investment would not only solidify Samsung’s commitment to the administration’s objectives but also foster a closer alliance with Intel.

Intel CEO Lip-Bu Tan. Image: Intel Corporation

Industry insiders reveal that Samsung’s exploration of an investment in Intel stems from the legitimacy and potential advantages it offers. The Trump administration has adopted a robust stance to stimulate investments in the U. S.Semiconductor landscape, illustrated by rival TSMC’s recent commitment of an additional $100 billion in U. S.operations, unveiled during a White House event.

However, Samsung’s investment in Intel is just one facet of a broader strategy. Sources indicate that Samsung may also pursue a partnership with Amkor, an American packaging firm. Given the escalating complexities of semiconductor packaging in the AI era, this collaboration could be advantageous for Samsung, especially as TSMC has already established in-house packaging capabilities.

The South Korean conglomerate recently celebrated a significant achievement with a $16.5 billion agreement to supply Tesla with next-generation AI chips manufactured in Texas, overseen directly by Tesla CEO Elon Musk. This partnership signifies Samsung’s growing prominence in the competitive semiconductor market.

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