Subj : Intel in the crosshairs for billion dollar investment to secure m
To   : All
From : TechnologyDaily
Date : Tue Nov 07 2023 14:15:05

Intel in the crosshairs for billion dollar investment to secure military 
microchips

Date:
Tue, 07 Nov 2023 14:05:21 +0000

Description:
Domestic manufacturing of semiconductors has become a primary concern due to 
risks posed by China.

FULL STORY
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Intel has the potential to be selected to receive several billions dollars US 
government funding to produce microchips for military and intelligence 
application, new reports have claimed. 

According to the Wall Street Journal , the funds will assist in building a 
secure facility for the production of the microchips as a means to reduce 
imports from areas in East Asia under threat from Chinese espionage and 
invasion. 

The funding comes as part of the Chips Act, a $53 billion project to produce 
domestic electronics such as semiconductors and also enhance the research 
capabilities of the US. Tax credits in exchange for chips 

The Chips and Science Act (Creating Helpful Incentives to Produce 
Semiconductors) is a bipartisan federal statute approved last year, providing 
several hundred billions dollars worth of funding to companies to secure 
domestic production of semiconductors for both military and intelligence use. 

The facilities built by Intel would be designated a secure enclave to 
manufacture chips for military application to lessen the impact of a Chinese 
invasion of Taiwan, where the US imports a significant number of its chips. 

While no final decisions have been made, people familiar with the situation 
have told the Wall Street Journal that the cost of the facilities could be 
between $3 billion to $4 billion. These funds would be secured from grants 
set aside within the Chips Act specifically designated for manufacturing, 
which make up around $39 billion of the total chips funding. 

This investment has been designated as a national security investment by 
Commerce Secretary Gina Raimondo, but the decision to potentially award such 
a large amount of the funding to a single company has seen bipartisan 
criticism. There are worries that the Chips Act could be putting all of its 
eggs in the Intel basket, with little funding left over for other 
manufacturers to diversify the market. 

The Taiwan Semiconductor Manufacturing Company (TSMC) has also voiced 
concerns surrounding US government subsidies it is due to receive for 
building a manufacturing plant in Arizona. TSCM announced the construction 
plans in 2020 but has since run into significant cost issues and problems 
with talent acquisition for personnel qualified to manufacture its 
semiconductors. More from TechRadar Pro Gartner says firms need game-changing 
AI or face getting left behind These are the best AI tools you can use right 
now Boost your home computing with the best mobile workstations



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Link to news story:
https://www.techradar.com/pro/intel-in-the-crosshairs-for-billion-dollar-inves
tment-to-secure-military-microchips


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