MEMO TO THE TRUMP WHITE HOUSE
Subject: The Pacific Foundry Accord: Intel USA Powered by TSMC
Date: January 23, 2026
From: Mark Nichols
Public archive: https://marknichols.com/the-pacific-foundry-accord/
1. Purpose
(a) Propose a non-aggressive Pacific alliance structure where TSMC acquires Intel at distressed valuation levels and rebrands the U.S. entity as Intel USA powered by TSMC.
(b) Convert a market collapse into a sovereign industrial win that deters China and de-risks Taiwan concentration.
2. Core Transaction
(a) TSMC acquires Intel at a fire-sale valuation corridor created by market loss of confidence (illustrative target range: ~$130B).
(b) Maintain and protect the Intel brand.
(c) Split operations into:
(1) Intel USA, under U.S. jurisdiction, security standards, and industrial charter, operated with TSMC process and manufacturing capability
(2) Intel Taiwan, preserved as continuity capacity inside TSMC’s global system
(d) Retain U.S. leadership continuity for Intel USA (Lip-Bu Tan or equivalent) under a dual-sovereign charter.
3. Why TSMC Would Do This
(a) Risk diversification: TSMC reduces single-point-of-failure exposure in Taiwan by adding deep U.S. capacity under a trusted brand.
(b) Geopolitical insurance: A shared Pacific ownership and governance ring makes coercion or invasion far more costly.
(c) Operational leverage: TSMC gains immediate U.S. footprint scale, workforce, fabs, supplier relationships, and CHIPS-enabled acceleration without building everything from scratch.
(d) Controlled expansion: TSMC can move select capability west in a structured way that preserves stability and avoids a “zero-sum” narrative.
4. Sovereign Capital Bloc and Industrial Alignment
(a) United States (Treasury support, CHIPS Act alignment)
(b) Taiwan (TSMC as operator)
(c) Japan (SoftBank and aligned capital)
(d) Singapore (GIC or Temasek)
(e) Malaysia (industrial capacity, technology infrastructure, investment collateral)
(f) South Korea (packaging, HBM ecosystem, interposer expertise)
(g) Optional members, conditional: Vietnam, Philippines (logistics and resilience contributions only, subject to strict IP controls)
5. Governance and Security Requirements
(a) Establish an Intel USA sovereign board with rotating seats for anchor capital and strategic stakeholders.
(b) Implement DOD-aligned data security and export control compliance as a condition of participation.
(c) Apply hard IP containment: segmented programs, secure enclaves, audit rights, zero-trust operations, and contractual penalties for leakage.
(d) Publish neutral foundry allocation rules to prevent internal capture and ensure fair access lanes for U.S. and allied demand.
6. Requested Executive Action
(a) Direct Commerce, Defense, and Treasury to evaluate and sponsor the Accord framework as national industrial infrastructure.
(b) Authorize a fast-track structure for a TSMC Intel acquisition and recharter of Intel USA under a sovereign industrial mandate.
(c) Convene a Pacific capital and security working group to finalize participation terms and IP safeguards.
7. Bottom Line
Intel is not being rescued. Intel is being re-forged as a U.S. sovereign foundry platform, powered by the world’s best operator, backed by a Pacific alliance that makes Taiwan safer and makes America stronger.