Increased AI Chip Manufacturing in the U.S. Intel has made significant investments in its U.S.-based foundry operations over recent years.

The continued momentum for Intel’s stock could force hedge funds to start buying. Plus, Intel’s process technology is getting more respect.

TSMC, which manufactures chips in Taiwan for Nvidia and other Intel competitors, is the gold standard in chip manufacturing. A deal with TSMC that enables Intel's foundries to produce chips on par with those of its rivals could be a game changer for the struggling company.

TSMC could send engineers to Intel’s foundry business as part of such a venture, and potentially launch a new entity jointly owned by TSMC and Intel that could benefit from U.S. government funding under the Chips Act, the analysts said. Intel’s foundry business has struggled to keep up with TSMC, losing $13.4 billion in 2024.

First came a statement by Vice President J.D. Vance early this week that "the Trump administration will ensure that the most powerful AI systems are built in the U.S. with American-designed and manufactured chips.