Feb 18 - TSMC (TSM, Financial) is pursuing buying ownership in Intel's (INTC, Financial) U.S. chip fabrication facilities at the instruction of the Trump administration. According to Bloomberg and Wall Street Journal sources, a potential acquisition that TSMC is considering entering will boost U.S. semiconductor manufacturing capacities. TSMC operates a foundry in Arizona and intends to expand its American facilities to ensure secure supply chain access.

While TSMC explores a potential investment in Intel's U.S. fabs, competition for these assets is intensifying, Broadcom Inc. (AVGO, Financial) has also entered the race, expressing interest in acquiring Intel's manufacturing operations. President Donald Trump shows signs of resistance against foreign control expansion at U.S. chip manufacturing facilities.

The intervention of government officials has intensified corporate pressure on Intel because the company continues to lose market share and faces ongoing obstacles within its foundry operation. According to financial analysts at Morgan Stanley, the strategic investment from TSMC will serve to satisfy growing market needs because of its prospects for increased shareholder value and not just the conventional financial support of Intel. The policies of the Trump administration may encourage TSMC to enhance local manufacturing, which creates two benefits: reduced trade dangers and strengthened domestic semiconductor infrastructure.