Commerce Secretary Gina Raimondo listens as President Joe Biden participates virtually in a meeting on the Creating Conducive Incentives for American Semiconductor Production (CHIPS) Act at the White House on July 25, 2022.
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Intel The company has been hit hard recently, losing 60% of its market value this year, as it struggles to find its way into the booming artificial intelligence market while aggressively building fabs in the United States. Gina Raimondo for assistance.
In a recent meeting with Raimondo, Intel CEO Pat Gelsinger expressed frustration with the heavy reliance on U.S. companies. British Semiconductorthe world’s largest contract chip manufacturer.
Raimondo later held meetings with some public market investors to emphasize the importance of U.S. chip manufacturing in light of growing geopolitical risks surrounding Taiwan, according to people familiar with the matter. Raimondo aims to urge shareholders of companies like this NVIDIA and apple People familiar with the matter said it recognized the economic benefits of having a U.S. foundry that could produce artificial intelligence chips.
Intel is currently building factories in four U.S. states as it seeks to become more of a foundry company, making chips for other suppliers. Earlier this year, Intel received up to $8.5 billion in CHIPS Act funding from the Biden administration and could receive an additional $11 billion in loans from the bill, which is passed in 2022.
No funds have been allocated yet. A senior administration official told CNBC that payments are expected to be released by the end of the year.
It’s an increasingly important move for Intel, which has struggled in the microprocessor market. In addition to losing share in the core PC and data center markets to the following companies AMDIn the field of artificial intelligence, Intel has almost no presence, while Nvidia dominates the field of artificial intelligence.
According to people familiar with the matter, Intel’s foundry work has been hampered by delays. TSMC is also building a foundry in Arizona and faces similar problems.
Spokespeople for the U.S. Commerce Department and Intel declined to comment.
Intel’s board of directors will meet this week to discuss the company’s restructuring plans, including potentially spinning off its design operations from foundries, according to people familiar with the matter. Intel Chief Financial Officer David Zinsner told investors at a conference last week that breaking up the business makes sense.
“What I can predict is that we will create more separation between the two businesses,” Zinsner said. “It’s important for customers to see this separation.”
In last month’s earnings report, Intel reported profit and revenue below analysts’ expectations and said it would cut 15% of its workforce. Following the report, the stock had its worst day in 50 years, falling to its lowest point in more than a decade.
Almost all of Nvidia’s cutting-edge chips are produced at TSMC, which is also a major manufacturer of AMD, Apple, and Amazon. Google and Broadcom. For years, there have been concerns that China might invade Taiwan, posing huge risks to the U.S. chip industry.
Nvidia CEO Jensen Huang, speaking at the Goldman Sachs Communications Conference on Wednesday, was asked about geopolitical risks related to Taiwan and what he would do if something happened.
“If we have to move from one fab to another, we have the ability to do that,” Huang said with Goldman Sachs CEO David Solomon. “We won’t get the same level of performance or cost, but we will be able to provide supply.”
watch: Intel near lowest level since 2010
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