For several months now, the US government has been injecting massive amounts of capital to attract semiconductor production capacity to the country. Obviously, Intel benefits from this money, unlike its competitor AMD, which has its own manufacturing units. But the funds are also coveted by other companies such as TSMC and Samsung. If Intel’s CEO is very insistent and “open” when it comes to recovering European funds to open a unit in Germany to be precise, he doesn’t hear it the same way when it comes to American policy.
For Intel, US taxes should go to US companies.
Invited to speak on the CHIPS Act at the Aspen Security Forums 2023, where the links between semiconductors and national security were discussed, Pat Gelsinger made it clear that, from his point of view, Intel should receive a large share of the $52,000 million that makes up the US CHIPS ACT envelope. His argument is relatively simple: these millions come from taxes paid by Americans and collected by the US government. Under these conditions, only a US company (including Intel, of course) can receive the lion’s share. Pat insists on pointing out that the blues not only produce in the US, but also conduct a large part of their R&D in the USA…Unlike their competitors.
“Because all my essential R&D is done here, most of their R&D is done overseas, so I think we should benefit more. (CHIPS Act funds)”
Obviously, Samsung and TSMC don’t deserve any help from the American taxpayer in this logic. A way of putting pressure where it hurts, since many US behemoths (AMD, APPLE and Nvidia) use these Korean and Taiwanese companies, respectively, to manufacture their chips. Customers that Intel would obviously be delighted to win back to amplify its Intel Foundry Services strategy.
A statement that should open the eyes of most European candids on the subject. For the position of Intel’s CEO is not just a personal opinion, it reflects the global philosophy that has driven Americans since the dawn of time. Thinking they can free themselves from Chinese control and the possible upheavals in Taiwan, Europeans are financing the chains that their American masters are going to put on them. In our imagination, let’s not forget that the Americans are the good guys…
Watch the conference video here :