During President Biden’s term in the Oval Office, his administration made a point to increase investment in domestic production. One of the achievements of the administration came in 2022, when Biden signed the law on chips and science – a law trying to invest $ 280 billion in research and development and semiconductor development here in the United States
Over the last few years, Intel appeared as one of the largest Chips users act funding. Given the increased investment in artificial intelligence infrastructure (AI)-especially in the data centers and chipver-I predicted that Intel could be a winner with a long period of time under the new Trump administration, as well as its predecessor, focuses on improving domestic investment.
However, a recent announcement from Production of semiconductors in Taiwan (Nyse: tsm) It makes me rethink my cautious optimism about Intel.
Let’s explore Intel’s latest mistake and assess why Taiwan’s latest announcement could be Checkmate’s final move against his American foundry.
Last year, Intel made a total of $ 53.1 billion. Although this was only a 2% drop of a year during the year, the results of the company’s foundry business were more alarming.
In 2024, Intel Foundry generated $ 17.5 billion sales – a 7% reduction in a year. The Business Foundry competes directly with Taiwan Sammy, which owns nearly 60% of the global foundry market. Since Intel Foundry is slowing at a faster rate over the company’s overall business, I’m not too convinced that Intel proves that it can be attracted to its long-established rivals.
To add salt to the wound, Intel only announced that it is now delaying the opening of a new plant in Ohio by 2030. For reference, the plant was to be in operation between this and 2026. Now, it is released by the next decade.
On March 4, Taiwan Sammy announced that it was investing $ 100 billion in the United States to build three additional fabrication plants, two packaging factories and A. Research and development (R&D) Center. The investment comes on the heels of the existing $ 65 billion project in Arizona, where TSMC builds additional production capabilities.
TSMC’s investment in the United States aims to help the company strengthen operational relations with larger customers, including Nvidia, AMD, BrodcomAnd Qualcomm.
Over the last few weeks, several tech giants in the beautiful seven group have announced their appropriate plans to invest in AI’s infrastructure over the next few years. On the surface, you may think that Intel can benefit from increasing capital expenditures by AI’s largest associates. Instead, TSMC noticed Intel’s fighting, and I see the new $ 100 billion company investment in the United States as a move that can further strengthen its already dominant pulse on the foundry market.
Source link
