Odd Lots Lots More on How CHIPS Act Money Got Awarded
May 3, 2024
Mackenzie Hawkins, a Bloomberg News reporter specializing in the semiconductor industry, dives into the complexities of the CHIPS Act funding. She reveals how $8.5 billion was recently granted to Intel and discusses the challenges faced by companies like TSMC. The conversation highlights the U.S.'s effort to boost domestic chip production amid international competition, labor issues, and supply chain vulnerabilities. With a focus on the future of AI-driven demand and military implications, Hawkins provides a comprehensive look at a critical industry undergoing significant transformation.
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CHIPS Act Funding Stage
- The CHIPS Act has allocated most of its grant funding, about 85%, for semiconductor factories in the U.S.
- These agreements are preliminary, requiring due diligence and benchmarks before funds are disbursed.
Intel's CHIPS Act Drama
- Intel received the largest CHIPS Act grant, $8.5 billion, but faced drama due to the Pentagon withdrawing funding from the Secure Enclave program.
- This caused delays and renegotiations regarding the allocation of funds for military chip production.
Secure Enclave Program Debate
- The Secure Enclave program, intended to fund military chip production, sparked debate about relying on a single company like Intel.
- While Intel lags behind competitors technologically, it's the only U.S. company making cutting-edge logic chips, creating a dilemma for the government.