“Intel’s restructuring could cause short-to-midterm disruptions, including potential product delays and shifts in support models,” said Manish Rawat, semiconductor analyst at Techinsights. “Additionally, even with US-based manufacturing, Intel’s deeper integration with TSMC still ties part of its supply chain to Taiwan – raising geopolitical and continuity concerns for security-sensitive customers.”
For Intel’s foundry to succeed – and for the US to maintain supply chain security and tech sovereignty – major chipmakers will need to shift some orders from Taiwan to the US, a move likely to drive up chip costs.
“While the US government’s CHIPS Act may help offset higher costs through subsidies, achieving Taiwan-level scale remains a near- to mid-term challenge, potentially driving up IT and electronics product costs for enterprises unless absorbed,” Shah said. “However, this move would safeguard US enterprises from future supply disruptions.”
Read the full article here
