On August 25, Beijing time, the Trump administration’s investment in Intel attracted widespread attention in the industry. Ming-Chi Kuo, a well-known analyst at Tianfeng International Securities, published an analysis on X saying that the greatest significance of the U.S. government’s investment in Intel is to provideconfidence support, strengthening the Intel“Too big to fail”belief, butThis move does not apply to TSMC, Samsung.
U.S. government takes stake in Intel
Ming-Chi Kuo pointed out that the U.S. government’s investment in Intel cannot guarantee its “technological ceiling,” but it can ensure"Valuation lower limit". This move will not directly help Intel's advanced process technology, but it will make the market willing to re-evaluate Intel's stock price to net value ratio at a lower discount rate, which will help increase Intel's valuation floor and improve stock market performance, thereby indirectly supporting Intel's operations.
Ming-Chi Kuo’s analysis
However, he believes that the shareholding model is not applicable to TSMC in Taiwan and Samsung Electronics in South Korea, because wafer foundry is a national strategic resource. If a foreign government takes a stake, it is tantamount to handing over the ownership of some of the most important national strategic resources to a foreign government, which may cause potential political risks, which the U.S. government does not want to see.
Ming-Chi Kuo said that TSMC and Samsung currently have stable profits, so they will be concerned about the possible dilution of earnings per share caused by junior common stocks. In addition, TSMC and Samsung do not shoulder the responsibility of revitalizing U.S. semiconductors, so remaining politically neutral is more beneficial to their long-term operations.