COLUMBUS, Ohio (WCMH) — Intel's stock performance saw a surge, but that momentum came to an end as Wall Street analysts expressed concerns over the recent rumors surrounding the company’s potential sale. These rumors have raised questions about the future of Intel's operations, including the company’s ongoing construction of its $20 billion semiconductor plant in New Albany, Ohio.

Intel's stock climbed by 38.5% over five days due to speculation that Taiwan Semiconductor Manufacturing Company (TSMC) might acquire at least 20% of Intel's foundry division. In addition, there were talks of Broadcom possibly purchasing Intel's product division, which sparked the stock rally. Intel Foundry manages the company’s semiconductor manufacturing plants, while the product division is responsible for developing technologies for sale. This speculation fueled Intel’s best stock performance since March 2020, with a significant 16.1% gain recorded on Tuesday.

However, the potential for a sale has left some uncertainties hanging over Intel's construction efforts in Ohio, where the New Albany plant is currently under development. This plant is set to be the most expensive construction project in Ohio's history and is expected to play a major role in the country's semiconductor manufacturing future.

“Entering this phase of the U.S. CHIPS and Science Act marks a pivotal step in strengthening the semiconductor ecosystem in the United States,” said TSMC Chairman and CEO C.C. Wei. The plant in Ohio is part of the larger national push to boost domestic semiconductor production, and the CHIPS Act plays a crucial role in funding these efforts.

While the potential for TSMC’s involvement has raised concerns, industry insiders believe the CHIPS Act funding, which has already begun flowing to the project, will provide a strong financial foundation. However, a sale to TSMC could complicate the future of the Ohio plant, as the funding could be impacted by the change in ownership, although it's unlikely to be fully jeopardized. TSMC's subsidiary in Arizona, TSMC Arizona, was awarded up to $6.6 billion in CHIPS Act funding.

Political Influence and the Future of Intel’s Ohio Plant

The Ohio Intel plant could face additional challenges if foreign ownership were to take place, particularly given U.S. policy preferences towards American businesses, especially in key sectors like semiconductors. President Donald Trump has historically supported U.S. companies in these industries and made his opinion clear about Intel’s potential sale.

Reports from Bloomberg, The Wall Street Journal, and The New York Times have indicated that Trump personally encouraged TSMC to acquire Intel’s Foundry division, citing its strategic importance. However, a White House official later stated that Trump was unlikely to back a foreign company taking control of Intel’s U.S.-based factories, which could further complicate the situation.

Additionally, Trump has been vocal about increasing tariffs on automobiles, pharmaceuticals, and semiconductors, potentially as high as 25% starting in early April. Such tariffs would place further pressure on U.S. manufacturing, including Intel and its suppliers.

“When they come back into the United States and they have their plant or factory here, there is no tariff,” Trump said during a recent statement. “So we want to give them a little bit of a chance.” The implications of this statement are important for semiconductor companies in Ohio, as steel and aluminum tariffs could raise production costs for Intel and others.

Tariffs and Their Impact on Ohio Manufacturing

The potential 25% tariff on steel and aluminum could have a significant impact on Intel’s New Albany plant. Semiconductor manufacturing is known to require large amounts of steel and aluminum, both of which are subject to these tariffs. In 2024, the U.S. imported 28.86 million tons of steel, approximately a quarter of all steel used in the country, according to the American Iron and Steel Institute.

If these tariffs go into effect, it could create challenges for Intel and other manufacturers in Ohio, as steel and aluminum are critical materials for their operations. However, there is a potential silver lining, as Trump emphasized the benefits of domestic production.

“We want to give them a little bit of a chance” to expand their manufacturing capabilities in the U.S., Trump said, referencing his plan to provide incentives for companies that build their plants on U.S. soil.

Intel’s Commitment to Ohio Despite Uncertainty

Despite the rumors of a sale and the challenges related to tariffs and foreign ownership, Intel's construction project in New Albany remains on track. A representative from Intel recently told NBC4 that the company has no updates on changes to the project, indicating that construction continues as planned. This is a sign of the company’s continued commitment to its Ohio-based operations and its belief in the long-term value of the plant.

Intel’s New Albany plant is part of a broader strategy to bolster the U.S. semiconductor industry and reduce dependency on foreign sources. As rumors swirl and political pressures mount, Intel remains focused on delivering one of the most significant manufacturing plants in the history of Ohio, one that could reshape the future of semiconductor production in the U.S.

Looking Ahead to the Future of U.S. Semiconductors

As the construction of the Ohio Intel plant moves forward, much is still uncertain regarding the company's ownership. The broader implications of foreign acquisition and the potential for new tariffs could change the dynamics of the U.S. semiconductor industry. However, with the CHIPS Act funding already in place, Intel’s commitment to Ohio appears steadfast, despite the swirling rumors and external pressures.

Originally reported by katie Millard in NBC4 At Noon.