US chip manufacturing bill will help Intel and Micron increase production capacity
2022-03-04
According to foreign media reports, Biden strongly supported the $52 billion "American Chip Manufacturing Act" when he delivered his first State of the Union address on March 2, hoping to build domestic chip manufacturing capacity in the United States. In his speech, Biden mentioned Intel's hyperscale foundry in Ohio. Intel has committed to spend more than $20 billion in Ohio and $20 billion in a wafer foundry in Arizona. It also spent $5.4 billion to acquire Tower Semiconductor, an Israeli wafer foundry, whose factories are located in Israel, Italy, California and Texas.
Biden said on March 2 that Intel CEO Pat Gelsinger was also present and told him that Intel was preparing to raise the investment from $20 billion to $100 billion, which would be one of the largest investments in U.S. manufacturing history. If Congress passes the chip bill, it will accelerate the construction of the Ohio fab, which was originally planned to be put into production after 2025.
In addition to Intel, Micron also has a fab and does not need to rely on TSMC or Samsung for foundry, so it is also expected to benefit from subsidies from the Chip Act.
According to BCG forecasts, the world has to spend between $900 billion and $1.23 trillion to build a self-sufficient semiconductor supply chain, of which the United States is expected to spend $350 billion to $420 billion.
