Intel even delayed groundbreaking at its chip mega-factory in Columbus, Ohio, where the company could invest more than $100 billion over the next decade.Ĭongress rationalized that US economic competitiveness and dominance in critical industries needed to be ensured with a robust manufacturing base in strategic industries like semiconductor production. That is, if the bill - with associated subsidies - wasn’t approved. Intel had lobbied hard, very insistently, for the bipartisan CHIPS+ Act, claiming it would have no choice but to move even more of its operations outside the US than it already has. Compared with February of this year, when there were enough chips on hand to support about 1.2 months of production, global inventory levels jumped to 1.4 months in June and then 1.7 months in July, according to VLSI Research. A rapid build-up in inventory in the chip supply chain since early 2022 is seen as the culprit. Why are chipmakers cutting infrastructure investments? As with many businesses, they do so when supply exceeds demand.
The Ebb & Flow of Chipmakers’ Focus on Manufacturing The Senator has pushed Congress, instead, to delegate funds to the cost-of-living crisis, effects from the pandemic, and the intensifying climate emergency. Sanders has been a severe critic of Congress as it approves billions of dollars in handouts to major corporations. Will a pay-the-investors-first attitude cause the US to lose the little market leverage that currently exists in the semiconductor industry?Ĭalling it “ a rigged economy,” Senator Bernie Sanders (I-VT) exclaimed, “On the same day a bill was signed into law to give a $76 billion blank check to microchip companies, Intel announced it will be cutting back on plans to increase jobs by $4 billion while increasing dividends for its wealthy shareholders.” You see, they’re positioned to get significant handouts from the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America and Science Act (also known as CHIPS+). We need to blast the audacity and hypocrisy of chipmakers. As if all that hasn’t been bad enough, now we learn that mega-corporations like chipmakers Intel and Micron have slashed their manufacturing investments - just when major government subsidies are coming their way. The resulting inflation due to supply chain intermittency has caused global political crises. Covid has been awful, with its shutdowns, social isolation, work stoppages, and scary sickness.
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