The US authorities may quickly push tougher for native chip manufacturing. The Biden administration and Intel Inc. are deeply involved about America sourcing the vast majority of its chips from Taiwan, particularly, from TSMC.
Intel CEO voices frustration at poor response to US chip manufacturing
The U.S. Division of Commerce Secretary Gina Raimondo had a gathering with Intel CEO Pat Gelsinger. The latter reportedly, “expressed frustration with America’s reliance on TSMC to provide superior chips.”
It’s no secret that Intel is struggling within the chip manufacturing enterprise. Particularly after the Generative Synthetic Intelligence (Gen AI) race started, Intel has been trailing behind Samsung, TSMC, and others.
Intel is aggressively constructing chip foundries within the U.S. The corporate has fab vegetation underneath development in 4 U.S. states.
Intel is making an attempt to turn into extra of a foundry enterprise. In different phrases, the corporate intends to fabricate chips for different suppliers on a contractual foundation.
On this alone, Intel was awarded $8.5 billion underneath the CHIPS Act. Handed in 2022, the CHIPS Act has provisions to grant Intel $11 billion extra in loans. By the way, there’s a enormous delay within the disbursement of the funds. Some studies recommend Intel may get some funds earlier than the present yr ends.
Will the US authorities urge Apple and different huge tech to supply chips domestically?
Taiwan, and extra particularly, the Taiwan Semiconductor Manufacturing Firm (TSMC) is the main chip producer. Nevertheless, the geopolitical tensions within the area are fairly excessive.
After interacting with the Intel CEO, Raimondo reportedly met with a handful of public market buyers. Raimondo might have reiterated the significance of native chip manufacturing within the U.S.
There’s no official announcement but, nonetheless, sources near the developments, have indicated Raimondo met with a number of huge tech firms, together with Apple, Amazon, Google, and Broadcom to pitch the thought of sourcing chips domestically.
Intel is without doubt one of the greatest recipients of funds underneath the CHIPS Act. Therefore, it could be within the Biden administration’s greatest curiosity to see the corporate succeed as a foundry enterprise, boosting chip manufacturing within the US. The corporate would additionally assist defend America from geopolitical uncertainty and guarantee it’s self-reliant by way of superior microchips.
