eetimes.com, Sept. 18, 2024 –
Delays in production starts by top chipmakers supporting the U.S. CHIPS Act, such as Intel and Samsung, are signs that the U.S. government stimulus measure may not be meeting expectations.
This week, Intel said it will slow the opening of its latest facilities in Europe by about two years.
"We will pause our projects in Poland and Germany by approximately two years based on anticipated market demand," Intel CEO Pat Gelsinger said in a Sept. 16 announcement. He pledged to keep U.S. investments related to the CHIPS Act in Arizona, Oregon, New Mexico and Ohio on track.
Still, at Intel's $10 billion new Ohio facility that's potentially the site for multiple chip fabs, the company has not yet installed any production equipment, the most expensive part of the buildout, according to Paul Triolo, who advises global tech clients at Washington, D.C.–based Albright Stonebridge Group.
"This suggests that Intel's entire U.S. commitment under the CHIPS Act could be in jeopardy, as the company considers splitting the design and manufacturing parts of the company," Triolo told EE Times. "Efforts by Commerce Secretary Gina Raimondo to appeal to large U.S. design companies like Nvidia and Qualcomm to use Intel's U.S. facilities, even before they are built out and running proven advanced processes, suggests that some panic has set in in the CHIPS Program Office given the huge commitment of funding to Intel."
Intel's initial $20 billion investment in Ohio could grow to as much as $100 billion, Gelsinger said more than two years ago.