U.S. Govt pushes Nvidia and Apple to use Intel's foundries
U.S. Secretary Gina Raimondo urged tech companies to use Intel's foundries for chip production, citing geopolitical risks and the need for domestic manufacturing, while Intel faces financial challenges and restructuring.
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U.S. Department of Commerce Secretary Gina Raimondo has urged major tech companies, including Nvidia and Apple, to utilize Intel's foundries for chip production, emphasizing the importance of domestic manufacturing amid geopolitical tensions, particularly concerning Taiwan. During private meetings with investors, Raimondo highlighted the risks associated with relying on foreign suppliers like TSMC, especially given the increasing threats from China. Intel is striving to enhance its position in the foundry market but is currently facing challenges, including a significant financial loss and a drop in stock prices. The Biden administration is keen on supporting Intel, which is a major beneficiary of the CHIPS Act, despite delays in funding disbursement. Nvidia's CEO has indicated that while the company could shift its manufacturing if necessary, it would not achieve the same performance or cost efficiency. The discussions reflect a broader push by the U.S. government to bolster its semiconductor industry and reduce dependence on foreign production.
- U.S. government encourages tech firms to use Intel for chip production.
- Geopolitical risks, particularly regarding Taiwan, are a major concern.
- Intel is struggling financially and considering restructuring its operations.
- The Biden administration supports Intel's growth under the CHIPS Act.
- Nvidia expresses willingness to shift manufacturing but acknowledges potential drawbacks.
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10 commentsI can see the US can probably force Apple to do that. Nvidia may be a tough sell unless the US puts an embargo on Nvidia. We know that won't happen.
Intel's lack of drive to innovate comes through in consequential dimensions like battery life. No amount of "made in USA" stickers is going to address that.
When China invades Taiwan it will be too late to have taken this step. See https://media.defense.gov/2023/Apr/24/2003205865/-1/-1/1/07-..., and https://global.upenn.edu/perryworldhouse/news/japans-respons..., et al. Advanced munitions require this capability. Xi is 71 years old now and has promised reunification, this conflict is inevitable and imminent.
The domestic (US) TSMC fabs are also a good step.
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