Intel is stinking about the $ 52 billion CHIPS law that boosts domestic production of semiconductors. TSMC has become the world’s dominant force in the contract chip manufacturing sector, and Intel is keen to regain the market share it lost in decades. If the CHIPS Act is passed, Intel will make an initial investment of $ 20 billion in Ohio’s new “megasite” fab (up to $ 100 billion could eventually be invested in the site).
However, some parts of the US semiconductor industry feel that the version of the CHIPS law, which will be voted in the Senate tomorrow, will unfairly benefit Intel. According to ReutersThe $ 52 billion subsidy and tax incentives offered by the bill will provide most of the benefits to companies like Intel.Intel design When Manufacturing most of the semiconductors, the CHIPS method strongly supports offsetting the cost of building a new fab in the United States. Other major US-based companies that design and manufacture their own chips include Micron and Texas Instruments.
Another FABS law (with bipartisan support) provides tax credits of up to 25% on the construction of fabs and manufacturing equipment needed to operate the facility.
However, Intel’s most direct competition in the client computing, graphics, and server / HPC markets comes from AMD and NVIDIA. AMD and NVIDIA are based in the United States, designing their own microprocessors, but contracting with external companies such as TSMC and Samsung to manufacture chips. As a result, they will not be able to fully benefit from the $ 52 billion storm from the US government.
The US House of Representatives is currently discussing a more beneficial version of the FABS law for companies such as AMD and NVIDIA to offer tax incentives that also cover aspects of semiconductor design. However, even with these additions, Intel is in a position to benefit most from the CHIPS and FABS laws than its peers.
“There is Intel that could win $ 5 billion or $ 10 billion under the FABS law in addition to $ 20 billion under the CHIPS law,” said one unnamed opponent of the upcoming version of CHIPS. Intel competitors said. FABS method. “So $ 30 billion goes to your direct competitors, and you get a penny? That will cause problems in the market.”
Intel CEO Pat Gelsinger is actively pushing for the passage of the CHIPS law, threatening to withdraw from the Ohio fab if the package fails. “We made it clear to McConnell, Democrats and Republicans that we would change our plans if this didn’t work,” Gelsinger said last week. “Europeans are moving forward very aggressively and are ready to give us incentives to move forward.”
Gelsinger refers to $ 43 billion in subsidies provided by the European Union to support local manufacturing.
