The Trump administration invested Intel's $8.9 billion in 10% stake, which was claimed by the outside world to save this long-standing company, but in-depth analysis emphasized that Intel wanted to "resurrect" more on internal technical innovation and market strategy adjustment rather than political rescue.
Intel was once one of the world's semiconductor giants, but in recent years, it has fallen into competition due to management failures. Not only did chip advancement process lead the way to TECHN, but the AI chip competition was defeated to Nvidia. The server market, power market and removable equipment market share were also lost in the competition, resulting in Intel's quarterly revenue and profit declines, and its stock price fell sharply at a relatively high of history, and financial pressure increased.
Server Market: AMD Powerful EPYC Processors account for a large market share Personal computer market: Intel faces ARM architecture and Apple's self-developed chip competition Mobile equipment market: Intel almost completely withdraws from the smartphone chip marketThe former chip overlord now needs the US government's investment in support. For national security considerations, the Trump administration will invest $8.9 billion in Intel to protect local supply chains and strategic industries. Although the government has acquired shares to save it, even if it has received a large amount of government funding, Intel's prospects are still full of uncertainties.
Analysts pointed out that government aid may only bring short-term positive phenomena, which is not enough to solve Intel's deep-rooted structural problems. The actual effect of the U.S. chip industry recovery plan is not clear. Intel once again stands at the core of his foot-stable power, and still has to rely on its own technical innovation, market strategy adjustment and management level reform, including ensuring customers' demand for advanced 14A processes.
Market viewing points believe that the Trump administration has provided Intel's transformation funds and time, and the company still has the potential to recover, but the viewing points point out that global competition is fierce, and government protectionism is difficult to maintain Intel's long-term competitive advantages, and even technology. The gap may further expand. Intel's dilemma reflects the intensity of global semiconductor industry competition. Companies need to continue to improve innovation in the technical, strategic and operational levels, and cultivate a sensitive focus on market changes in order to stand in an unsuccessful place in the global market.
Did Trump save Intel? Not reallyExtended reading:
The U.S. government invests US$8.9 billion in Intel and acquires 10% of its shares