Trends
Intel prepares for US$100 billion spending spree across four US states
The U.S. government announced the federal funds to Intel under the Chips Act on Wednesday. Intel prepares for a US$100 billion spending spree across four US states to build and expand factories after securing $19.5 billion in federal grants and loans. Rivals Intel’s plan will also involve revamping …
Headline
The U.S. government announced the federal funds to Intel under the Chips Act on Wednesday. Intel prepares for a US$100 billion spending spree across four US states to build and expand factories after securing $19.5 billion in federal grants and loans. Rivals Intel’s plan will…
Context
The U.S. government announced the federal funds to Intel under the Chips Act on Wednesday. Intel prepares for a US$100 billion spending spree across four US states to build and expand factories after securing $19.5 billion in federal grants and loans. Intel’s plan will also involve revamping sites in New Mexico and Oregon and expanding operations in Arizona. However, Intel’s longtime rival Taiwan Semiconductor Manufacturing Company (TSMC) also building a massive factory that it hopes will receive funding from President Joe Biden.
Evidence
Pending intelligence enrichment.
Analysis
The funds provided by Biden’s plan for a broader chipmaking renaissance will go a long way to help Intel mend its wounded business model. For decades, the firm led the world in making the fastest and smallest semiconductors, selling them at a premium price and plowing the profits back into more research and development to stay ahead of the pack. But Intel lost that manufacturing edge in the 2010s to TSMC and its profit margins plummeted as it maintained market share with inferior products through price cuts. Also read: Intel aims for over 100 million AI PCs globally by 2025
Key Points
- Intel is planning a US$100-billion spending spree across four U.S. states to build and expand factories.
- The centerpiece of Intel’s five-year spending plan is turning empty fields near Columbus, Ohio, into “the largest AI chip manufacturing site in the world”, starting as soon as 2027.
Actions
Pending intelligence enrichment.
