Frequently Asked Questions: Intel USA Chipmaking

There is no single reason for today’s shortages, but supply chain management business practices, the global pandemic, and unforeseen demand for certain products all contributed. The most important lesson may be that the U.S. has too little capacity for manufacturing semiconductors and is overly dependent on suppliers based abroad.

As part of our plan to accelerate the United States’ return to industry leadership, we are significantly expanding our manufacturing capacity in the U.S., both to produce our own products as well as those of other companies through our new Intel Foundry Services business. We are starting with a $20 billion investment in advanced semiconductor manufacturing operations in Arizona and a $3.5 billion investment in New Mexico for advanced packaging.

We are advocating for the U.S. government to partner with business to ensure a level playing field for U.S.  semiconductor manufacturers, which will in turn create continued economic growth, a sustainable innovation ecosystem and stronger national security anchored by more resilient American supply chains, U.S. intellectual property, engineering, and manufacturing capability.

While some foreign governments have aggressively promoted the development of semiconductor manufacturing, the U.S. share of semiconductor manufacturing has declined from 37% in 1990 to 12% today and is at risk of falling behind further. The scale and scope of the investment required to catch up to other countries is enormous. While we’re proud of the investment we’re making, it’s a small portion of the investment needed for the United States to return to a leadership position in semiconductor manufacturing.

Other nations’ governments have aggressively promoted the development of semiconductor manufacturing, including through massive subsidies, fostering the development of major manufacturing operations overseas.

There is bipartisan consensus on the need to put the U.S. back on the path to leadership in semiconductor manufacturing industry, and we are confident that the federal government and industry, working together, can put the U.S. on a path to restoring our share of semiconductor manufacturing to greater than 30%. This is an ambitious goal, but it is a moonshot worthy of our nation.

The needed capacity doesn’t currently exist anywhere in the world. Neither Intel nor the industry overall have capacity to meet current demand, let alone future demand. By investing now in advanced semiconductor manufacturing, we can ensure that the chips of the future are manufactured here in the U.S.

As the only U.S. semiconductor company with the depth and breadth of intelligent silicon, platform, software, architecture, design, manufacturing, and scale, as well as innovation and leading-edge manufacturing capabilities here in the U.S., Intel is uniquely positioned to help the U.S. regain leadership. Intel has a history and track record of helping support and develop healthy innovation ecosystems too, creating the kind of “virtuous circle” that the U.S. needs to win in critical innovation areas like AI, biotech, and communications.

A diversified, global supply chain is important, and we will continue to operate one, but U.S. economic security and national security depend on the U.S. growing its semiconductor manufacturing leadership. In addition to helping foster an innovation ecosystem for the future, domestic chip manufacturing is crucial to ensuring the resiliency of our supply chains and the availability of advanced chips for critical national security applications.

You can contact your members of Congress in order to let them know you support partnership between U.S. companies and the federal government to create a vibrant domestic semiconductor manufacturing industry.