One of four companies who received funding from the US Gov to develop semiconductor plants within the USA (Intel, Texas Instruments, Samsung and TSMC).
Intel and Texas are domestic (more likely to receive funding in long term as coming from US tax payers). Of the two Intel was most bearish for 5+ years due to competition from AMD (direct competitor) and more recently NVDA.
Opportunity: The last fabrication site built domestically was in built in 1995 (New Mexico) for Intel and has simply outsourced manufacturing to TSMC. Due to recent global climate and supply chain issues they upgraded this old factory in 2021. This recently upgraded factory can only produce 14nm chips (THIS IS 2014 TECHNOLOGY!!!). In August, 2021 Intel has partnered with the Department of Defense and will be building two new factories scheduled to open in 2024 to make 5nm chips (2020 technology and likely to be delayed). These two factories will cost roughly the price of 12 aircraft carriers (more than the 11 in service now). Though intel claims that they will be at the TSMC by 2025 this is impossible as this assumes that TSMC makes no progress in 5 years time. Foreign Policy experts believe that this will take 10 years time and a lot more money.
Congress is currently working on a bill expected to pass by July 4th - The legislation called the COMPETES Act authorizes almost $300 billion for research and development, including $52 billion to subsidize semiconductor manufacturing and research (10x more than the recent funding for Ukraine for 35 billion). For Intel this will of course be on top of the contract from last years with the Department of Defense. Keep in mind that allocation of funds to which companies is unclear but Intel is a likely candidate for they have been already been working in partnership with the Deparment of Defense.
Intel and Texas are domestic (more likely to receive funding in long term as coming from US tax payers). Of the two Intel was most bearish for 5+ years due to competition from AMD (direct competitor) and more recently NVDA.
Opportunity: The last fabrication site built domestically was in built in 1995 (New Mexico) for Intel and has simply outsourced manufacturing to TSMC. Due to recent global climate and supply chain issues they upgraded this old factory in 2021. This recently upgraded factory can only produce 14nm chips (THIS IS 2014 TECHNOLOGY!!!). In August, 2021 Intel has partnered with the Department of Defense and will be building two new factories scheduled to open in 2024 to make 5nm chips (2020 technology and likely to be delayed). These two factories will cost roughly the price of 12 aircraft carriers (more than the 11 in service now). Though intel claims that they will be at the TSMC by 2025 this is impossible as this assumes that TSMC makes no progress in 5 years time. Foreign Policy experts believe that this will take 10 years time and a lot more money.
Congress is currently working on a bill expected to pass by July 4th - The legislation called the COMPETES Act authorizes almost $300 billion for research and development, including $52 billion to subsidize semiconductor manufacturing and research (10x more than the recent funding for Ukraine for 35 billion). For Intel this will of course be on top of the contract from last years with the Department of Defense. Keep in mind that allocation of funds to which companies is unclear but Intel is a likely candidate for they have been already been working in partnership with the Deparment of Defense.