1. Sure, the USA NEEDS INTEL, as Intel is the one U.S. firm able to offering cutting-edge logic manufacturing.
2. Neither Samsung or TSMC plan to carry their cutting-edge manufacturing to the U.S. within the close to time period.
3. U.S. prospects like Nvidia, Apple, Google, and many others wants and will perceive they NEED a second supply for his or her lead product manufacturing resulting from pricing, geographic stability and provide line safety causes.
4. Intel is money poor and might’t afford to put money into the capability wanted sooner or later to interchange TSMC or perhaps a cheap fraction of TSMC capability. They in all probability want a money infusion of $40B or so to be aggressive. Realistically that funding is 100% of the Chip Act Capital grants so unlikely the USG is the savior.
5. The one place the money can come from is the purchasers. They’re all money wealthy and if 8 of them have been keen to take a position $5B every then Intel would have an opportunity.
6. The current Intel CEO’s feedback about not investing in new expertise (14A) till prospects join is a joke. To win on this area it is advisable to be the chief in expertise not the follower. It takes a number of years to create considered one of these applied sciences and no buyer needs to join one thing that’s second finest.
7. Happily Intel has good expertise to work with (excessive NA EUV, bottom energy, and many others) in order that they have a sensible shot at management IF THEY INVEST NOW. They simply want the cash.
8. The place does the cash come from? The purchasers make investments for a bit of Intel and assured provide. Why ought to they make investments? Home provide, second supply, nationwide safety, leverage in negotiating with TSMC, and many others. AND IF THE USG GETS ITS ACT TOGETHER, they catalyze the motion with a 50% (or no matter quantity Trump picks) tariff on cutting-edge semi imports. If we will help home metal and aluminum, certainly we will help home semiconductors.
9. The FFWBMs (4 former sensible board members) of Intel proceed to assert you have to interrupt Intel into two items earlier than any buyer will put money into Intel. Be severe. There are a lot of firm interactions that contain each provide and competitors. It’s also extraordinarily arduous to think about Intel actually competing with the likes of Nvidia, Apple, Meta, Google, Dell, and many others of their properly established product strains. By all means, if you wish to complicate the issue, then take the time to separate up Intel and make the FFWBMs completely satisfied however when you’re within the enterprise of saving Intel and its core manufacturing energy for the USA then remedy the actual drawback – instant funding in Intel, dedicated prospects, nationwide safety, and many others.
10. POTUS and DoC can set the stage, the purchasers could make the mandatory investments, the Intel Board can lastly do one thing optimistic for the corporate, and we cease writing opinion items on the subject.
The opinions expressed in Fortune.com commentary items are solely the views of their authors and don’t essentially mirror the opinions and beliefs of Fortune.
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