Intel might be the key to re-realizing the American dream of advanced chip production and packaging on U.S. soil. Under the Trump administration, the United States has been making significant efforts to establish leading-edge chip manufacturing domestically. Achieving this goal is challenging for several reasons. In the race for the most advanced silicon, only a few major veteran players remain: Intel, Samsung, and TSMC. Among these, Taiwan-based TSMC has consistently overcome obstacles to become the leader in the semiconductor industry. Through a strategic approach to semiconductor development, TSMC has excelled in both leading-edge node production and advanced chip packaging, enhancing performance.

Historically, Intel has faced difficulties with leading-edge semiconductor node production, even outsourcing some chip manufacturing to TSMC. However, there is a significant opportunity for Intel to not only produce silicon but also establish itself as a major packaging partner for many manufacturers, including TSMC. TSMC's facilities in Arizona address the issue of USA-based manufacturing only partially. While TSMC's Arizona Fab 21 produces 4 nm wafers, these wafers must be sent back to Taiwan for packaging, disrupting the sovereign supply chain that is crucial for domestic manufacturing. Addressing these issues could present a good opportunity for Intel, even if Team Blue doesn't manufacture the underlying silicon. [...]