Huan Qiu Shi Bao·2025-08-12 22:50Core Viewpoint - The relationship between President Trump and Intel has shifted dramatically, with Trump initially calling for CEO Pat Gelsinger's resignation due to "conflicts of interest," but later praising him, creating uncertainty for Intel amid its ongoing struggles in the semiconductor industry [1][2]. Company Performance - Intel's market value has halved since early last year, with its chip manufacturing division contributing about one-third of its revenue but remaining in a state of loss [4]. - The company's decline began approximately 20 years ago due to failed acquisitions in telecommunications and wireless technology, resulting in a $12 billion investment with no returns [4]. - Intel has lost its competitive edge, falling behind TSMC and Samsung in chip manufacturing technology, and as of June 2023, 20% to 25% of its chips were produced externally, projected to rise to 30% by April 2024 [5]. Industry Context - The U.S. semiconductor industry has seen a significant decline, with its global market share dropping from 37% in 1990 to 12% today, while East Asia now accounts for 75% of global chip production [6]. - Despite its struggles, Intel is viewed as crucial for U.S. technological leadership, being the only American company with advanced chip manufacturing capabilities, although it has not produced cutting-edge chips in eight years [7]. Government and Policy Impact - The CHIPS and Science Act, effective from 2022, aims to support semiconductor manufacturing in the U.S., with Intel receiving approximately $8 billion in subsidies contingent on project milestones [7]. - Trump's proposed 100% tariffs on imported chips aim to encourage domestic production, but experts argue that high manufacturing costs in the U.S. remain a significant barrier [10][11]. Future Outlook - Intel's future in advanced chip manufacturing is uncertain, with calls from former board members to spin off its manufacturing division to ensure competitiveness in AI and advanced electronics [8]. - The company requires around $40 billion in cash to maintain competitiveness, with potential investments from major clients seen as a possible lifeline [9]. - The effectiveness of tariffs as a policy tool in the semiconductor sector is questioned, with concerns that they may drive electronic manufacturers overseas rather than bolster domestic production [12].