| | | Pat Gelsinger seeks stronger CHIPS Act backing from incoming Trump administration
Amanda Liang, Taipei; Levi Li, DIGITIMES Asia
Tuesday 12 November 2024
Since assuming the role of Intel CEO in 2021, Pat Gelsinger has actively collaborated with government leaders to advance the CHIPS Act, a 2022 initiative aimed at boosting US semiconductor independence and providing significant subsidies for domestic chip production. With Donald Trump's election victory, Gelsinger aims to continue securing policy support to keep Intel's manufacturing plans on course.
Switching to the winning horse
Industry sources reveal that Gelsinger has been in close contact with Vice President-elect JD Vance, showing confidence in the upcoming administration's support for the CHIPS Act. On November 8, Gelsinger reportedly congratulated Vance via text, underscoring his intent to foster stronger collaboration with the new leadership.
Gelsinger recently expressed frustration over delays in CHIPS Act funding, despite Intel's US$30 billion investment in US manufacturing, as noted by Yahoo Finance and Tom's Hardware. He argued that Intel's US investments in R&D and production outpace competitors, justifying a larger share of the CHIPS Act's support.
During recent discussions with Vance, Gelsinger conveyed optimism that the new administration would accelerate CHIPS Act funding to support Intel's US manufacturing plans, The Verge reports.
President-elect Trump has previously voiced criticisms of the CHIPS Act, questioning the Biden administration's subsidy strategy. Industry analysts point out that while TSMC's Arizona plant is advancing, Intel's slower progress on Fab 52 and Fab 62 may put it at risk of subsidy cuts during Trump's tenure, as reported by The Wall Street Journal.
While the Biden administration held high expectations for Intel's US manufacturing expansion, some officials expressed disappointment at its slower-than-expected progress, The New York Times notes. With Trump's return to office, Intel may face increased scrutiny, necessitating faster construction timelines to retain federal subsidies.
Intel is progressing with its US expansion, including its Ohio fab, which broke ground in 2022 with President Biden present. While Intel initially set a 2025 operational goal for the plant, the final timeline will depend on market demand and the speed of federal funding.
Gelsinger's Vance connection
Vance has expressed support for Intel's Ohio facility, and as a US Senator from Ohio, his role is crucial for Intel's relationship with the Trump administration. Gelsinger recently shared that he has been in communication with Vance and other Republican leaders, including incoming Senator Bernie Moreno, to reinforce Intel's position under the new administration.
The Wall Street Journal reports that Intel's Ohio facility production may now start in 2026, or even 2027. Intel maintains that progress remains steady, with over 100 employees hired and construction workers expected to reach several thousand by late 2024.
Intel's US expansion faces delays from CHIPS Act funding and construction hurdles. However, Gelsinger hopes to collaborate with the new administration to expedite funding, keeping Intel's manufacturing plans on track. He emphasizes that Intel's projects are progressing and reiterates the company's commitment to supporting the American semiconductor sector alongside the Trump administration.
From digitimes.com |
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