Confirming several days of supply chain rumors, a Bloomberg report Friday confirmed that Taiwanese chip maker Taiwan Semiconductor Manufacturing (NYSE:TSM) is exploring taking a controlling interest in Intel's (NASDAQ:INTC) U.S. factories following a request from the Trump administration.
After raising the idea with TSMC in recent meetings, the chipmaker has shown openness to it. It is unclear if Intel shares this openness.
On Wednesday, Baird analyst Tristan Gerra pointed out that there were rumors in the supply chain of such a deal.
The rumors have helped push Intel’s stock to its best weekly gain in 40 years.
The news comes as President Trump said on Thursday that he wants to “take back” chipmaking dominance from Taiwan after they “stole it.”
One analyst is calling the agreement MIGA – Make Intel Great Again.
On why the stock is trading lower following the headline, Mizuho (NYSE:MFG) desk analyst Daniel O'Regan commented: “I would just say its probably due to the fact INTC is up ~24% this week, and having its best 4 day stretch since the 80’s. Plus, the story is a little short on actual details.”
Despite today's reaction, O'Regan said, it seems likely that a deal will happen and their team thinks it's “positive” for Intel.
Shares of Intel are down 2.2% into the close of trading Friday.
Related Articles
TSMC said open to deal to 'make Intel great again'
Shein's UK stock market listing likely delayed to second half of 2025, FT reports
Russia stocks lower at close of trade; MOEX Russia Index down 0.72%
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.