{"id":5316,"date":"2024-03-24T07:00:09","date_gmt":"2024-03-24T05:00:09","guid":{"rendered":"https:\/\/ch.jfdi.cc\/?p=5316"},"modified":"2024-03-24T07:00:09","modified_gmt":"2024-03-24T05:00:09","slug":"intel-prepares-for-100-billion-spending-spree-across-four-us-states","status":"publish","type":"post","link":"https:\/\/ch.jfdi.cc\/?p=5316","title":{"rendered":"Intel prepares for $100 billion spending spree across four US states"},"content":{"rendered":"
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Intel (INTC.O) is planning a $100 billion spending spree across four US states to build and expand factories after securing $19.5 billion in federal grants and loans \u2013 and it hopes to secure another $25 billion in tax breaks.<\/p>\n

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The centerpiece of Intel\u2019s five-year spending plan is turning empty fields near Columbus, Ohio, into what CEO Pat Gelsinger described to reporters on Tuesday as \u201cthe largest AI chip manufacturing site in the world\u201d starting as soon as 2027.
\nThe US government announced the federal funds to Intel under the CHIPS Act on Wednesday, sending its shares up 4 per cent in premarket trading.
\nIntel\u2019s plan will also involve revamping sites in New Mexico and Oregon, and expanding operations in Arizona, where longtime rival Taiwan Semiconductor Manufacturing Co (2330.TW) is also building a massive factory that it hopes will receive funding from President Joe Biden\u2019s push to bring advanced semiconductor manufacturing back to the US
\nThe funds provided by Biden\u2019s plan for a broader chip making renaissance will go a long way to help Intel mend its wounded business model.
\nFor decades, Intel led the world in making the fastest and smallest semiconductors, selling them at a premium price and plowing the profits back into more research and development to stay ahead of the pack.
\nBut Intel lost that manufacturing edge in the 2010s to TSMC and its profit margins plummeted as it cut prices to keep market share with inferior products.
\nGelsinger announced a plan in 2021 to return Intel to the No. 1 position, but to make the plan profitable, he has said he would need government support.
\nWith that assistance in hand, it\u2019s now time for Intel to spend.
\nGelsinger said about 30 per cent of the $100 billion plan will be spent on construction costs such as labor, piping and concrete. The remaining will go to buying chipmaking tools from firms such as ASML (ASML.AS), Tokyo Electron (8035.T), Applied Materials (AMAT.O) and KLA (KLAC.O), among others.
\nThose tools will help bring the Ohio site online by 2027 or 2028, though Gelsinger warned the timeline could slip if the chip market takes a dive. Beyond grants and loans, Intel plans to make most of the purchases from its existing cash flows.
\nGelsinger has previously said that a second round of US funding for chip factories likely will be needed to re-establish the United States as a leader in semiconductor manufacturing, which he reiterated on Tuesday.
\n\u201cIt took us three-plus decades to lose this industry. It\u2019s not going to come back in three to five years of CHIPS Act\u201d funding, said Gelsinger, who referred to the low-interest-rate funding as \u201csmart capital\u201d.
\nHowever, even with the federal backing, Intel needs to show that it can compete with its Taiwanese and Korean rivals sooner rather than later, said Ben Bajarin, CEO of analyst firm Creative Strategies.
\n\u201cIt will be important to know how much longer \u2018smart capital\u2019 is needed for Intel before they can stand on their own,\u201d Bajarin said.
\nOverall, though, Intel would be the most important chipmaker for US interests even as rivals build in the country, said Jimmy Goodrich, a semiconductor export and technology adviser at RAND Corp.
\n\u201cOnly Intel has the workforce, technology, and supply chain that is largely US centric. So while what TSMC and Samsung are doing here is important and should be welcomed, it\u2019s also important to have a strong home team,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Intel is planning to spend 0 billion across four US states to build and expand factories, having secured .5 billion in federal grants and loans and hoping to secure another billion in tax breaks. The plan includes creating the world’s largest AI chip manufacturing site near Columbus, Ohio, by as soon as 2027, with funding from the CHIPS Act. This initiative also involves revamping sites in New Mexico and Oregon, and expanding operations in Arizona. Intel aims to regain its leading position in semiconductor manufacturing with government support, spending 30% of the budget on construction and the rest on purchasing chipmaking tools from companies like ASML, Tokyo Electron, Applied Materials, and KLA. CEO Pat Gelsinger mentioned the possibility of needing more US funding to re-establish the country as a leader in semiconductor manufacturing and highlighted the importance of “smart capital” from low-interest-rate funding.<\/p>\n","protected":false},"author":3,"featured_media":5317,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[842,492,1766,186,1512,2787,3215,33,1625,2511,3,304,2110,250,415,3216,1991,899,756,387,3110,961,1670,1033,2247,720,816,3214,1358,1065,1682,544,380,18],"class_list":["post-5316","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-ai","tag-biden","tag-budget","tag-business","tag-cash","tag-chip","tag-chip-manufacturing","tag-companies","tag-construction","tag-costs","tag-cyprus","tag-funding","tag-funds","tag-google","tag-government","tag-government-support","tag-industry","tag-interest","tag-joe-biden","tag-lost","tag-market-share","tag-mexico","tag-president-joe-biden","tag-prices","tag-profit","tag-rest","tag-samsung","tag-spending-spree","tag-support","tag-tax","tag-technology","tag-united-states","tag-us","tag-world"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\nIntel 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