Samsung is reportedly exploring an equity stake in Intel as part of a strategic effort to bolster U.S. domestic semiconductor manufacturing and reduce reliance on external supply chains amid rising geopolitical and economic tensions.
Samsung is reportedly considering an equity investment in Intel as part of a broader strategy to navigate the complex landscape of U.S. tariffs and strengthen domestic semiconductor production. According to reports, this move aligns with efforts to bolster the local semiconductor ecosystem and mitigate reliance on external supply chains, a goal increasingly prioritised by U.S. policymakers.
The potential partnership is seen as a strategic step not only to circumvent tariffs implemented under former President Donald Trump’s administration but also to deepen Samsung’s cooperation with Amkor Technology for chip packaging and testing within the United States. This cooperation is crucial as Amkor has secured significant funding and projects aimed at expanding advanced semiconductor packaging capabilities in the U.S.
Amkor Technology recently signed a non-binding memorandum of terms with the U.S. Department of Commerce, facilitating a $2 billion investment to establish an advanced packaging and test facility in Peoria, Arizona. This project, supported by up to $407 million in CHIPS Act funding announced by the Biden-Harris administration, is anticipated to create around 2,000 jobs and strengthen the domestic semiconductor supply chain. Moreover, Amkor’s collaboration with Taiwan Semiconductor Manufacturing Company (TSMC) on advanced packaging and testing further underlines the growing momentum in building a robust U.S.-based semiconductor backend ecosystem.
This development follows TSMC’s announcement of plans for a third factory in the U.S., accompanied by a substantial $100 billion investment package aimed at boosting semiconductor manufacturing capabilities on American soil. Industry experts and U.S. officials regard Intel as the sole domestic giant currently capable of operating in the advanced manufacturing segment at scale, making Samsung’s contemplated investment particularly significant.
According to the U.S. Commerce Department, subsidy packages amounting to billions have been approved for key players like Micron, TSMC, and Samsung to expand semiconductor production within the country. There is also discussion within the government, led by Commerce Secretary Howard Lutnick and backed by President Trump, about taking direct equity stakes in some of these companies, including Intel, reflecting a new approach to safeguarding U.S. economic and national security interests through deeper involvement in the semiconductor industry.
The reported interest of Samsung in Intel follows a trend seen with other major investors, such as the Japanese conglomerate SoftBank, which announced a $2 billion investment in Intel earlier. This suggests a strategic alignment with the U.S. government’s agenda of fostering domestic semiconductor resilience through partnerships and investments.
Overall, Samsung’s potential infusion of capital into Intel, combined with partnerships involving Amkor and TSMC, underscores a concerted push to fortify America’s semiconductor manufacturing capabilities. This aligns with broader government initiatives aimed at addressing supply chain vulnerabilities and geopolitical risks in the sector, thereby supporting U.S. industry and national security objectives.
Source: Noah Wire Services
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