Chipmakers are out for blood, building up intensive lobbying operations to angle for federal subsidies under the CHIPS and Science Act, designed to bulk up the semiconductor manufacturing industry in the United States. A report from the New York Times depicts a fight with Intel and other companies headquartered in the U.S. against TSMC, which is headquartered in Taiwan, and its clients such as AMD.
The sniping has come from both sides, the Times reports. Intel asked government officials how much money from U.S. taxpayers should be going to its competitiors, which are based outside of the country, and suggested that American technology and intellectual property could end up elsewhere. Additionally, the report names Intel and other U.S. companies like GlobalFoundries and SkyWater Technology as wondering whether foreign firms' U.S. factories would be able to continue producing chips "in the event of a crisis int heir home country," likely referring to the idea of a potential conflict between China and Taiwan.
But competitors have suggested that Intel is a risky bet, and that Intel has a ways to go to catch up to its rivals. TSMC has committed to a $40 billion investment in fabs in Arizona, which are set to come online in 2026 with 3 nanometer-class nodes (Apple is a rumored customer). The company, which also counts AMD as a major client, wrote in a filing that "preferential treatment based on the location of a company's headquarters is not an effective or efficient use of the grant."
In a March filing, AMD suggested that competing companies could use the money to build factories, but not immediately make them operational with the equipment needed to make chips .
"Any facility receiving federal assistance must be operational upon completion of construction," AMD wrote. "A facility that sits idle or is held in reserve for demand increases should immediately forfeit any federal funds." This is likely in reference to Intel, which is attempting to make its name as a foundry service.
An intel spokesperson didn't comment on AMD's jabs, but the Times says that they defended CEO Pat Gelsinger's "smart capital" policies, suggesting that Intel could build shells for factories and then get them up and running to match the demands of the market. But Intel suggested that while that strategy is being followed in fabs in Arizona, Ohio and New Mexico, the plan is to have working factories, not "just building shells."
And that's all without universities and other research institutions trying to get in on the action. The Times reports that President Joe Biden's administration is planning on releasing the "ground rules for applications" next week, with grants possibly starting this spring.
No matter how the U.S. government decides to dole out money, it will have a challenge in kickstarting a domestic semiconductor industry, which would include getting enough workers, raw materials, research and development, manufacturing capacity across the country. TSMC founder and former CEO Morris Chang previously jabbed to Congresswoman Nancy Pelosi that "fifty billion dollars – well, that’s a good start."
For more, including reporting on TSMC's relationship to the U.S. military and a variety of other organizations jockeying for grants, check out the Times' full report.
