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
We need to start our economies anew with fresh ideas and new leadership.
All that said, and as weird as this sounds--we should pay more for things that cost a lot of money (and resources) to produce. Luxuries aren't meant to be for everyone; it's why they're called 'luxury items'. You want them, you have to earn them. This is the world. It's always been this way.
china had not had an industrial revolution until the late 20th century - having the largest pool of (confined!) labor and vast, totally untapped, natural resources, they were destined to be a world power and dominate the global market. the looking at reagan era polices ignores nixon's a decade prior nor other administration' policies (esp trade) since both. i mean really? the whole global supply chain is because of ronnie's trickle down? that is rich. :shadedshu: (psst that stops at our shores)
lets try the lack of regulations, lack of human rights and lack of environmental concerns in a totalitarian government then a greedy capitalist republic buddy?
If you look at it another way
The worlds leaders years ago exploited China for it's cheap labor
Now that has come full circle and bit everyone in the backside and everyone acts surprised :laugh:
*looks at supermarket prices*
*looks at appliance prices*
*looks at car prices*
*looks at GPU prices*
Yeah bud, keeping it in china is doing a LOT to keep prices under control. Yessiree, its not like the price of everything has gone to the moon regardless of manufacturing location.
All we have done is make china and taiwain richer and more powerful in consequence
Think you got the middle east mixed up in there which China has nothing to do with a couple of those price hikes
Unfriendly local oil and gas policies had done those
US was near oil/ gas independent until less than 2 years ago and poof that goes bye bye quickly Russia crap wouldn't of effected the US near as much except for imported goods.
edit: nope, nvm. Just echoing memories of media's twistings:
Intel says it will invest $7B in Arizona factory - CNET
Intel, TSMC Plan US 'Self-Sufficiency' In Semiconductors As Ongoing Crisis Gives Supply-Chain Scare (yahoo.com)