Posted on 06/30/2022 3:48:06 PM PDT by anthropocene_x
“The rest of the world is moving rapidly despite the inability of Congress to get this finished,” said Gelsinger on a panel at the Aspen Ideas Festival.
Congress passed the CHIPS Act as part of the National Defense Authorization Act in 2021 but never appropriated a budget for its programs. The money for subsidies is currently stuck in negotiations as the House and Senate attempt to reconcile differences on a broader package of policies to help the U.S. tech industry compete with China.
Last week, Intel said it would delay the groundbreaking ceremony of a new $20 billion facility in Ohio owing to a lack of government funds. “I hate the idea of announcing a delay,” Gelsinger said on Tuesday, claiming Intel wanted to “go first and bigger in Ohio.” But he warned that without funding, Intel “would end up investing a lot more in Europe as a result.” The chipmaker already plans to spend about $35 billion to expand its production in the European Union, including a new $18 billion facility in Germany.
In February, the European Union earmarked about $46 billion in funding for chip manufacturing as part of the European Chips Act. Of that, $7.3 billion will be used to help subsidize Intel’s new Germany plant.
Japan is covering 40% of a new TSMC plant in Kumamoto, drawn from a $4.5 billion fund to support the country’s semiconductor industry.
Gelsinger said the U.S. needs to invest in chip manufacturing as a matter of national security, shifting the center of production away from East Asia. “This is the future of geopolitics,” he said.
(Excerpt) Read more at fortune.com ...
Tim Ryan will save the day!!!
I had a bad feeling when Ohio announcement first came out. Too good to be true. Congress NEVER fails to disappoint.
I don’t know why taxpayers should fund businesses, but admit it’s hard to build competitive industry in the USA if foreign countries are willing to cover the costs to build elsewhere.
He wants a subsidy. Thinks he’s entitled. Does this mean we owe him one?
Subsidies are very common in the semiconductor industry. Asian countries give huge subsidies to create high-tech jobs there.
We give indirect subsidies to other industries that have good lobbyists (defense, oil, Pharma, corn, soy)
How much of the Intel gov’t funding is slated to boomerang back to the DNC?
Just supposing it's deliberate?
In this particular case, you maybe want to look at where we are having to source chips for defense products from, from battle computers on tanks and ships down to the individual rifleman’s modern optical sight.
Hint: We *can’t* source most of them here in the States because there’s almost nobody that can provide them from US plants. The subsidy would also offset most of the government-caused overhead and regulatory compliance stupidity, as well as clearing regulatory roadblocks.
Stop helping libtards get elected and they won’t screw you over 🤪
Can you power a semiconductor factory with wood, reindeer dung and the entire country of the Netherlands pedaling stationary bicycles?
Move Intel.
AMD will pick up the slack.
As a matter of national security, we need this chip plant and the one the Taiwanese are building in Arizona. Release the funding.
Foreign government funding needs to be compensated for by tariffs.
Welfare for corporations is bad.
It took about 20 minutes for my Microsoft Edge browser to load.
Microsoft PC chips might not sell well in the future.
Release the funding, you mean print the money, right?
I had a friend who designed and built processor production lines for Intel. The lines have a lifetime of less time than you’d imagine. They don’t usually retool. They move and build a new one. He’s done it in the US and Middle East.
As opposed to printing it for Ukraine? Yes.
We need domestic computer chips. There’s a plant being built in Arizona. We need another.
I had a friend who designed and built processor production lines for Intel. The lines have a lifetime of less time than you’d imagine. They don’t usually retool. They move and build a new one. He’s done it in the US and Middle East.
Intel is searching desperately for government subsidies to boost its bottom line among investors.
Intel’s competition is AMD.
AMD is currently eating Intel’s lunch in the chip marketplace.
Intel’s technological lead has stagnated into second place and falling. This is a trend that has been in effect for several years and is expected to continue for several years into the future by analysts.
Subsidizing Intel for no good reason hurts Intel’s competitors who do not receive subsidies and therefore will be at a financial disadvantage while building out their USA chip facilities.
Intel is no longer competitive. Sinking $20B, while good for Intel, and perhaps good for those corrupt politicians who can be expected to receive kickbacks as a result of the Intel deal, is bad for competition, and bad for the USA.
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