I think a partnership with China is politically unpalatable at the moment. But stranger things have happened, and that can change on a whim if the Trump Administration decides co-opetition is better than war. Everything is a lever, and everything is a deal.

Given how brilliantly destructive splitting Intel in two is likely to be, I’m surprised selling the foundry directly to SMIC isn’t one of the promoted options. That would, at least, encourage continued innovation all around.

I think it is very plausible Intel’s 18A process and the intellectual property behind it is more valuable than what either TSMC or Samsung will achieve in the coming years

On a more serious note, Solomon’s trick of threatening to cut the baby in half may yet uncover the true loving mother of economic prosperity in the United States.

We may have no choice here. It might be Intel/TSMC US versus SMIC/TSMC Taipei.

Intel without it fabs would end up at a cost disadvantage, a margin disadvantage, and would lose its cash cow properly managed sustaining the organizations overall monopoly bloated although right sizing cost structure currently operating at marginal revenue = marginal cost = price for every next unit of production. Currently just enough money in fabrication and packaging to produce every next unit of production to cover CapEx brown and green field fab construction, outfitting and the research and development expense.

I’ve proposed in my writings that Intel sell shares in IF to between 5 and 7 large customers that would hold board seats and participate in decision making OPERATNG Intel IF on the ‘private golf club’ model for access, starts, wafer and other materials as an operating satellite of a ‘federated’ Intel. This is a similar business model to ARM holdings plc; parent and satellite(s). Government and the US Trump executive understand federated and private golf club business models and lots of people in semi fabrication and equipment play golf.

All foundries are basically clubs (small cartels) maintained by their largest customers on material inputs block negotiation / procurement directing to downstream system design production so why not Intel and some appropriate number of charter IF fab club members? If the operation grows charter members can sell some of their shares to grow membership. If foundry fails, the value of those shares becomes another question BUT I don’t think Intel IF will fail and success sustainable well operated.

I also think the Intel + GoFlo merger a viable idea.

The January 27, 2025 regular 9341 Congressional briefing recommended State of Ohio start looking for a New Albany buyer before fab shell outfit and TSMC would not be a bad buyer for auto / industrial embedded components production. I believe Intel will never produce an Intel component in Ohio on embedded slim margin. If not TSMC there are a handful of prospect fab buyers already producing components for auto and industrial embedded so why not on that core competency?

Mike Bruzzone, Camp Marketing