11.05.2020 Intel Daily Analysis

11.05.2020 Intel Daily Analysis

Intel today is trading at $59.67, it went up with $0.50 mainly because Intel spokesman William Moss noted that Intel is in discussions with the United States Department of Defense over-improving domestic sources for microelectronics and related technology. He went on to say that the company is well-positioned to work with the US government to operate a US-owned commercial foundry and supply a broad range of secure microelectronics. Intel Chief Executive Bob Swan wrote a letter to the Department of Defense in late March in which he expressed the company's willingness to build a foundry - a term used in the industry to reference a chip factory - in partnership with the Pentagon. Swan pointed out that this is more important for the company given the uncertainty created by the current geopolitical environment. This comes amid increasing diplomatic tensions between the U.S. and China during the coronavirus outbreak, with both sides trading barbs over who is to blame for the spread of the disease after already being involved in trade tensions for almost two years. The letter from Intel CEO pointed out that it is in the best interest of the United States and of Intel to explore how Intel could operate a commercial US foundry to supply a broad range of microelectronics. Meanwhile, Taiwan Semiconductor Manufacturing Co has been in talks with the U.S. Department of Commerce about building a US factory but said it has not made a final decision yet. TSMC spokeswoman Nina Kao pointed out that they are actively evaluating all the suitable locations, including in the U.S., but there is no concrete plan yet.