Wednesday, June 8th 2022
The US CHIPS Act: Why Intel Supports It
As the world comes to grips with chip shortages due to supply chain disruptions and ripple-effects from the global pandemic, Intel's leaders are urging Congress to fund the CHIPS for America Act to create a more stable future for the U.S. tech industry.
In 1990, 80% of the world's semiconductors were produced in the U.S. and Europe. Today, 80% are produced in Asia, where countries provide substantial incentives to domestic semiconductor industries. This helps create a 30% to 50% cost disadvantage for companies that produce semiconductors in the U.S.
Increasing manufacturing in both the U.S. and the European Union is key to helping rebalance the global supply of chips. In February, EU President Ursula von der Leyen announced the European Chips Act, with the goal of doubling the EU's global semiconductor manufacturing share to 20% by 2030. It also provides for more R&D investments in disruptive technologies, supports small business and startups by attracting new talent to Europe for them, and focuses on building partnerships with like-minded countries to strengthen interdependencies.
The CHIPS for America Act became law in January. In March, the Senate passed $52 billion in funding for those programs in a strong bipartisan vote. The funding still needs to be approved by the House of Representatives.
"Time is of the essence," said Intel CEO Pat Gelsinger during a March hearing in Washington, D.C.
American businesses in every sector across the economy are facing a semiconductor shortage, he added, "and the only way to alleviate the current supply-demand imbalance long term is to increase manufacturing capacity by funding and implementing the CHIPS Act."
Our economic security, Gelsinger said, depends on reliable, resilient access to semiconductors.
In 1990, 80% of the world's semiconductors were produced in the U.S. and Europe. Today, 80% are produced in Asia, where countries provide substantial incentives to domestic semiconductor industries. This helps create a 30% to 50% cost disadvantage for companies that produce semiconductors in the U.S.
Increasing manufacturing in both the U.S. and the European Union is key to helping rebalance the global supply of chips. In February, EU President Ursula von der Leyen announced the European Chips Act, with the goal of doubling the EU's global semiconductor manufacturing share to 20% by 2030. It also provides for more R&D investments in disruptive technologies, supports small business and startups by attracting new talent to Europe for them, and focuses on building partnerships with like-minded countries to strengthen interdependencies.
"Time is of the essence," said Intel CEO Pat Gelsinger during a March hearing in Washington, D.C.
American businesses in every sector across the economy are facing a semiconductor shortage, he added, "and the only way to alleviate the current supply-demand imbalance long term is to increase manufacturing capacity by funding and implementing the CHIPS Act."
Our economic security, Gelsinger said, depends on reliable, resilient access to semiconductors.
39 Comments on The US CHIPS Act: Why Intel Supports It
Yep dream a little dream
When people rediscover high prices all this will be back in asia where it and many other manufactures were encouraged to move to.
Cycle repeats with same results except now intel wants taxpayer payoffs instead of US tax breaks to move
Wait we already have high prices from the basic concept supply and demand :eek:
www.techspot.com/news/94856-economist-china-must-seize-tsmc-if-us-tightens.html
Anyway for the EU part, i guess only caring about the car industry did had it's disavantages. We would never allow 80% of cars being made in Asia. Priorities.The China thing is a self fulfilling prophecy. They would never invade as long as we were interconected and dependent on each other. Now we keep increasing the distance between them and us, and it's obvious that the least they have to lose the more they will have a bigger tendency to finally invade Taiwan, to do even worst inside their own country.
But there is a lot to be gained by these divides, lots of money as we see every day.
Capitalism is great isn't it :ohwell:
Hmmm. During peak graphics card prices you probably could have made them in. Germany with unionized labour cheaper than what they were selling for. I think the execs remuneration doesn’t help pricing either.
Don't underestimate the difference in prices of everything if we just shifted all the production to the West. Most of the things would could 5 times as much and more.
What Is Minimalism? - The Minimalists
We could use less crap and more manufacturing jobs.
I've worked with them in the past you could order from the same company a top product or a shitty product, it was our choice. You get what you pay for.
Not to mention that much of the crap is ordered specificaly by us to be crap and cheap.
as for other things yes we could easily make them here for not much difference in prices if corps weren’t so greedy and kept wanting greater and greater Record Profits each quarter. There are things made domestically that are not much more than “overseas “ made stuff. But yes some things are 5x more.
examples.
brake rotors I used to buy made in Canada and USA. Now “overseas “. I still pay the same price for them!!
I used to buy “roots” jogging pants made in Canada now made over seas and still pay same price.
many savings corps make. They don’t pass along to the consumer anymore.
also expanding further most factory jobs paid 3x more than min wage so if cost of items was 3x but your wage was 3x it’s a wash. Remember before the Cold War ended most things we bought were made in Japan Europe and North America.
But as a "happy by-product" you do end up getting things cheaper, it depends a lot on the product, how intensively it uses people, human labor
Apple could easily make less profit and make things in the US (maybe not NY idk, but there cheaper places in the US, Alabama, idk, i know income varies a lot in the US), maybe not all of it, but most of it. And the price would probably be the same.
Please avoid partisan politics.
But now, it is already too late. There is a very wide and strong coalition of countries in BRICS, SCO, EAEU and CSTO which comprises around 130 countries in the world, including some very powerful states China, India, Russian Federation, Brasil, Mexico, South African Republic, the African Union, etc.
Empires rise and fall, it is time for a new world order.
This is not new, maybe in the beggining, but now we are dealing with them for a long time.
They are making it, but we are pulling all the strings, we are completely in control.
I see a lot of blame shifting that should fall on us not them.