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Intel’s shares saw a boost earlier this week after Japanese investment giant Softbank announced a $2 billion investment. However, investor sentiment has remained uncertain due to concerns about potential foundry spinoffs and slow demand for leading-edge processes. Intel’s stock closed 7% lower yesterday amid broader tech selloffs and reports suggesting that the Trump administration might convert Intel’s CHIPS Act awards into equity.
Following Softbank’s investment, a report in the Korean press suggests Samsung is also considering taking a stake in Intel to win favor with the Trump administration and strengthen its partnership with the company. This move would also provide practical benefits and legitimacy for Samsung, which has been eyeing ways to enhance its semiconductor capabilities.
Investing in Intel is just one of several options Samsung is exploring. The company is also considering partnering with American packaging firm Amkor, given that semiconductor packaging has become crucial for AI applications. While TSMC has established in-house chip packaging facilities, Samsung lags behind and could benefit from bringing Amkor on board.
This year, Samsung made a significant breakthrough by announcing a $16.5 billion chip production agreement with Tesla to manufacture the automaker’s next-generation artificial intelligence chips in Texas, with CEO Elon Musk overseeing the project personally.
In summary, Samsung is looking at various strategies to support domestic semiconductor manufacturing and win favor with the Trump administration, including potential investments and partnerships with key players like Intel and Amkor.
