"To help with that transition, President Donald Trump has introduced potential chip tariffs and policies in recent months meant to bring more semiconductor manufacturing Stateside. In late August, The Trump administration took an unprecedented step toward that goal when it converted an existing government grant, meant for domestic semiconductor manufacturing, into a 10% equity stake in Intel. This deal was structured to grant the U.S. government additional equity in Intel if the company's ownership of its foundry business -"
"First, some history: In March 2021, Intel launched its foundry business alongside a commitment to spend $20 billion building two new chip manufacturing plants in Arizona. A year later, the company announced its intent to acquire Tower Semiconductor, a company in the custom foundry industry, for $5.4 billion, but that didn't pan out due to regulatory troubles, and the companies cancelled the merger in August 2023."
The Trump administration is pursuing semiconductor reshoring to secure U.S. primacy in artificial intelligence, using tariffs, policies, and direct equity measures. The administration converted a government grant into a 10% equity stake in Intel and structured the deal to award additional equity if Intel’s ownership of its foundry falls below 50% within five years. Intel launched its foundry in March 2021 with a $20 billion commitment for two Arizona plants. Intel attempted to buy Tower Semiconductor for $5.4 billion but cancelled the deal in August 2023 due to regulatory issues. Intel Foundry has struggled to gain customers and momentum, prompting plans to make it an independent subsidiary amid cost cuts and layoffs.
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