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The unorthodox manner in which the current US administration is inking trade deals has required multinational corporations to adapt. They're stepping up commitments to increase manufacturing in the US, a vital prerequisite to getting on the administration's good side.
Samsung already has a significant manufacturing presence in the United States, and the company continues to pour billions more into its semiconductor facilities in Texas. A new report claims that Samsung could take things up a notch by investing directly into Intel.
Samsung hasn't commented on the matter as yet
The administration has been trying to revive Intel, a symbol of American semiconductor manufacturing, that hasn't had a good run as of late. SoftBank's recent $2 billion investment in Intel has led to speculation that others may also consider investing in the company.
A report out of South Korea claims that Samsung is evaluating an investment in Intel. What form that investment would take, whether debt or an equity stake, hasn't been identified in the report.
Given that the administration is keen on making Intel competitive again, a direct investment in the company would serve its goals, and ostensibly align the investor with them, potentially leading to support from the administration in other matters, particularly pertaining to tariffs.
Samsung has various businesses that are sensitive to tariff adjustments. It sells mobile devices, consumer electronics, home appliances, and a lot more in the US. Tariffs would take a big chunk out of its revenues in the US, so if this is a way it can dent the impact, perhaps it would be an investment worth making for the Korean giant.
The post Samsung could invest billions into Intel to remain in the administration’s good books appeared first on SamMobile.
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