Samsung Invest in Intel to Escape Trump’s Tariffs

Samsung investment in Intel has been one of the most buzzed-about items in the global semiconductor market. Samsung to invest up to $1B in Intel: reports The logic behind Samsung’s investment in Intel is not just to grow its business but to release pressure from the Trump administration, which has been pressing global companies to have more investments in the US.

President Trump has also issued a warning to manufacturers: companies that don’t invest in America could face steep tariffs. As a means to avoid such sanctions, Samsung investment in Intel may be the company showing a good faith interest in the ignorant economic policies of the US. The decision could also give Samsung political and economic leverage in one of its most important global markets.

Samsung Withdraws Application for Investment in Intel-IIROC Samsung Reviews Investment Plan for Intel-Canada SEOUL (Korea Newswire) April 02, 2020 — Samsung Electronics Co., Ltd. said that it is reviewing the border measures of the regions where it is operating, and a program to support its local partners.

Samsung’s investment in Intel news is particularly timely given the huge changes moving through the semiconductor sector. Intel is a key player in efforts to increase local chipmaking in the United States. It is particularly critical following TSMC’s announcement to construct a third factory there. Samsung’s investment in Intel could help secure the American semiconductor supply chain and wean the country off its reliance on overseas chip makers.

The Japanese investment firm Softbank had previously announced a $2 billion equity investment in Intel. In response to that news, Intel’s stock price jumped sharply. Now that Samsung investment in Intel could give the struggling company an additional boost as it faces increasing pressure from the likes of AMD and Nvidia.

Win-Win for US and Intel

Samsung intel investment wraps up after internal scrutiny, claims report Samsung also had other Sectors being considered for investment, but now is homing in on Intel, for obvious political and financial benefits a decision like that would have. Samsung bet on Intel also dovetails with US drive to bolster domestic semiconductor industry.

Samsung is also considering partnershps with local companies, such as packaging company Amkor, to reinforce its US operations. Samsung foray in Intel, as well as potential local partnerships, enables it to play the part of a close ally of the U.S. government and contribute to national technology base.

Global Semiconductor Market Impact

Samsung investment in Intel would send ripples through global chip industry. It could also bolster the US economy, creating jobs, more investment, and a reduction in dependence on Asian chipmakers. For Intel, an investment from Samsung might provide some stability and confidence as it copes with production delays and market competition.

Meanwhile, the market for semiconductors is experiencing a surge in investments. Big players like Nvidia and AMD have already revealed their intentions to grow in the United States. Adds to momentum Samsung and Intel investment further underscores the global trend towards boosting local manufacturing ecosystems.

Conclusion

Why Samsung invest in Intel Cavium’s investment is strategic decision that was influenced by politics and; market. It may help Samsung dodge the Trump administration’s tariffs, but it could also benefit the US chip industry — and provide some much-needed backing for Intel. With additional firms pledging to expand manufacturing at home, Samsung’s investment in Intel is seen as a turning point for the world’s semiconductor sector.

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