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Invest in U.S. Chipmaking Now

Nearly 200 companies identified the chip shortage as a problem for their business in recent earnings calls. By fully funding the CHIPS for America Act, Congress can contain the problems created by today’s chip shortage and enhance supply chain resilience and national security.

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The Problem

Semiconductors are the brains behind the technology that permeates all our interactions―the global communications network, every social media interaction, every retail experience, and every vehicle, hospital, farm and factory floor― creating societal and economic value around the globe. They also power the advanced technologies that keep us safe.

The U.S. once led the world in semiconductor manufacturing, but we have fallen behind. Other countries, especially in Asia, made deliberate investments to build powerful chipmakers in their own countries. Their focus delivered results. Foreign state subsidies created a ~30% cost advantage for foreign chipmaking plants, and the result of that advantage is startling: in 1990, the U.S. supplied 37% of the world’s chips, but that has fallen to 12% today, undermining U.S. technology leadership with significant economic and national security implications.

Semiconductors have never been more essential to our economic and national security. Semiconductors represent the fifth-largest U.S. export sector, supporting a quarter million U.S. jobs directly and over a million indirectly.

The problem is so severe that a recent White House study on supply chains concluded, “Our reliance on imported chips introduces new vulnerabilities into the critical semiconductor supply chain.”

Infographic source information ›

Video: We Need to Act Now

Failing to invest in U.S. chipmaking will lead to a further erosion of the U.S.’s technological advantage and add more uncertainty and instability for supply chains, while depriving the U.S. of the economic benefits of this innovation ecosystem. It’s urgent to restore balance, dependability, and resilience to semiconductor supply. To do this, we need Congress to fund the CHIPS Act legislation immediately.

Why We Need Public-Private Partnerships

According to Boston Consulting Group and the Semiconductor Industry Association, “the ten year cost of a state-of-the-art fab, including both initial investment and annual operating costs, ranges between $10 billion and $40 billion.” As Moore’s Law drives the need for manufacturing innovation, each successive generation of semiconductors becomes increasingly expensive to build. These cost increases have left fewer companies able to continue driving leading edge technology. That’s why some foreign governments invested in their own chipmakers to help them lead.

The only way for the U.S. to address these growing economic and national security risks is to increase domestic semiconductor manufacturing capacity and capability. Incentives here in the U.S. also level the playing field for American companies, who compete with foreign-based companies heavily subsidized by their own governments. Government incentives for domestic semiconductor industries in the U.S. are essential to grow local economies, to strengthen national security and supply chains, and to cultivate the skills required to renew this engineering and innovation ecosystem.

A recent nationwide poll of Americans indicated a widespread understanding of the importance of the chipmaking industry to the U.S. economy and national security, and the urgent need for Congressional action to address the semiconductor shortage. Acting now would grow the U.S. semiconductor manufacturing industry, and represent a great opportunity for a bipartisan coalition to address an issue that has strong public support.

Doing Our Part: Leading with Innovation

Intel is committed to helping meet the growing global demand by expanding our manufacturing capacity in order to strengthen global supply chains. This commitment would begin with a $20 billion investment to create large-scale foundry operations in Arizona and a $3.5 billion manufacturing investment in New Mexico, and a $20 billion investment in two new leading-edge chip factories in Ohio, which could grow to as much as a $100 billion investment over the next decade. We plan to make additional capital investments to expand manufacturing capacity in the U.S. and abroad to meet demand.

We are also investing in a series of foundational innovations that will power new products through 2025 and beyond. Our recent Accelerate announcement unveiled some of the most detailed process and packaging technology roadmaps the company has ever provided, including:

  • RibbonFET, our first new transistor architecture in more than a decade
  • PowerVia, an industry-first new backside power delivery method 
  • Our plans to adapt next-generation extreme ultraviolet referred to as High Numerical Aperture (High NA) EUV

Our goals are ambitious, and to accomplish them we will need support and investment from the federal government to increase our domestic semiconductor manufacturing capacity on the scale needed.

Together, we can go faster. Together, we can restore balance, dependability, and resiliency to semiconductor supply chains.

Photo (left): Ohio site rendering

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Latest Updates

Video: How to Bring Semiconductor Manufacturing Back to America

Passing the CHIPS for America Act is essential to bring semiconductor manufacturing back to America.

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Video Replay: Intel’s Manufacturing Webcast

Intel leaders Pat Gelsinger and Keyvan Esfarjani detail the company’s latest plans for investing in manufacturing leadership.

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FAQs


Intel is committed to providing regular updates on our plans to strengthen global semiconductor manufacturing supply chains.

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