From Nasdaq:

U.S. officials plan to provide nearly $30 billion in subsidies for advanced semiconductor manufacturing to boost AI chip development domestically. Allocation of funds between foreign leader Taiwan Semiconductor Manufacturing and homegrown company Intel remains uncertain. The rapidly evolving AI chip industry poses challenges as today’s technology may become outdated in just a few years.

The U.S. CHIPS Act, passed in 2022, will allocate funds to Intel, TSMC, and Samsung for building factories in the U.S. Commerce Secretary Gina Raimondo emphasizes the need to enhance AI chip production to secure technological leadership. Tensions persist as TSMC has not committed to bringing its most advanced technology to the U.S.

Intel plans to lead AI chip manufacturing with its advanced processes, but faces challenges in competing with TSMC. The company aims to be the preferred manufacturer by combining chips from various sources. While Intel’s manufacturing technology shows promise, TSMC currently dominates the AI chip market. The company must execute its strategy efficiently to succeed.

Overall, the push to strengthen AI chip production in the U.S. involves strategic decisions on funding allocation and partnerships with industry leaders. The outcome will determine the country’s technological competitiveness in the evolving landscape of AI chip development.



Read more at Nasdaq: FOCUS-US officials face tough choices for subsidizing AI chip manufacturing