Will Intel and TSMC work under American guidance?

Will Intel and TSMC work under American guidance?

Expansion seems to be the word of the day when it comes to giant tech companies.

The Trump administration is in talks with the two companies to build chip factories in the States. The tech companies will be working with different departments;the Department of Defense focuses on the relationship with Intel regarding the improvement of domestic sources for microelectronics. In a statement released by Intel's spokesman William Moss," Intel is well-positioned to work with the U.S. government to operate a U.S. owned commercial foundry and supply a broad range of secure microelectronics." The partnership between the two is a result of a letter of intent sent in March by Bob Swan, which showed its company’s availability to build a chip factory in collaboration with the Pentagon.

Taiwan Semiconductor Manufacturing Co (TSMC) will be collaborating with the Department of Commerce about building a factory in the U.S. No final decision is in sight yet. TSMC is not only in talks with Trump's Administration but also with Apple, one of its most significant customers, to build a factory in the States.

Moreover, Samsung, which has a factory in Austin, Texas, is looking to expand the ongoing manufacturing operations in the U.S. to produce advanced chips.

The three companies can make the fastest and most power-efficient chips at the moment on the market.

Although it closed higher on Friday, in today's premarket, Intel stock price in set to open in the red, TSMC seems to continue its Friday gains, with 0.17% higher in premarket.

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Sources: wsj.com, reuters.com, techcrunch.com.


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