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According to reports, the U.S. government is seeking a breakthrough for Intel and has demanded that Taiwan secure a 49% stake in the company to proceed with the trade agreement. Alternatively, Taiwan would need to invest $400 billion into the U.S., making an Intel stake acquisition more appealing from a financial standpoint.
These rumors have been circulating since Gelsinger’s departure. The U.S. government is eager for Taiwan’s TSMC to take control of Intel, leveraging its expertise and potentially integrating TSMC’s operations at Intel’s facilities. An Intel-TSMC partnership could be a result of the broader Taiwan deal, as the Trump administration prioritizes strengthening U.S. chip manufacturing.
Taiwan is currently negotiating with the U.S. to reduce tariff rates to 15%, similar to those in the EU and Japan. This would require substantial investments, estimated at $400 billion. However, acquiring a stake in Intel could be much less costly for TSMC while complicating the American chip supply chain, as Taiwan has been dominating it.
Previous reports suggested that an Intel-TSMC merger might not benefit Team Blue’s foundry division. As trade negotiations continue, the terms are likely to change significantly. For now, Intel is expected to play a role in a deal with Taiwan.
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According to the reports, what financial condition would make an Intel stake acquisition more appealing for Taiwan?
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