Washington, D.C.: The Trump administration appears to be mirroring Prime Minister Modi’s ‘Make in India‘ campaign. After a meeting with American chipmaker Intel’s CEO Lip Bu Tan, earlier this week, Donald Trump is considering ‘saving’ the troubled company with a stake purchase and an investment in its upcoming factory in Ohio. The chip fabrication plant, worth $31 billion, has faced mounting delays due to funding issues and rapidly evolving technologies, with the revised completion date slated for 2031.
Intel Corporation, a source of American pride as a pioneering chipmaker, has been facing increasing losses due to intense competition from Taiwan’s TSMC and IT-enabled chipmaker Nvidia.
The company’s shares rose almost 8% after President Donald Trump took the unusual step of ‘rescuing’ a privately-held company.
This intervention seems to align with Trump’s promise to his voters to ‘Make America Great Again’, as American voters have long seen cheap imports as the biggest threat to their livelihoods.
Donald Trump has repeatedly threatened to impose tariffs of up to 100% on imported semiconductors and chips, crucial pieces of technology that power everything from smartwatches to nuclear submarines.
Once regarded as one of the most reputable semiconductor companies, known to power most computers, Intel has failed to catch up with the AI-led revolution in recent years. Its management hasn’t been able to notice the upcoming market trends, and many of its offerings now risk becoming obsolete. The company has tasked industry veteran Lip Bu Tan to revive the company, amidst company-wide layoffs, suspended dividend payouts, and a risk-averse culture.
