The Biden administration is providing $162 million to Microchip Technology to support the domestic production of computer chips — the second funding announcement tied to a 2022 law designed to revive U.S. semiconductor manufacturing.
The incentives include $90 million to improve a plant in Colorado Springs, Colorado, and $72 million to expand a factory in Gresham, Oregon, the Commerce Department said. The investments would enable Microchip Technology to triple its domestic production and reduce its dependence on foreign factories.
Much of the money would fund the making of microcontrollers, which are used by the military as well as in autos, household appliances and medical devices. Government officials said they expected the investments to create 700 construction and manufacturing jobs over the next decade.
I will keep reposting my thoughts on what’s going on.
Xi told Biden that China plans to invade Taiwan. This is an act of diplomacy, giving the US a chance to prevent this from triggering WWIII.
China wants Taiwan for a myriad of reasons, not the least of which is TSMC, coupled with the AI embargo the US has levied on China. China must invade Taiwan if they want to be relevant in the tech sector 10 years from now.
Suddenly, Intel, who was once competitive with TSMC and now relies on them entirely, is telling us that “we will be beyond TSMC by 2024” really? No one’s buying it. Sounds like a publicity headline to satisfy military brass or some senators or something.
Now we’re investing directly in domestic chip manufacturing.
I’m surprised it’s not more cash tbh.
The US is trying to effectively move TSMC operations to US soil, in some form or another.
A war over Taiwan is likely going to destroy Taiwan’s domestic production. I would imagine this gets lumped in with things like steel production.
I was also surprised by the low number, and thought it might be a “first installment” with a sunk-loss mindset. I would expect a number with a B behind it. The future of the world’s economy, assuming it doesn’t all crash due to climate change, may be dependent on this investment.
Long INTC
yuuup
It does seem like removing reliance on Taiwanese fabs is the name of the game. Which is especially bad news for them.