Sun Sep 15 17:21:39 UTC 2024: ## US Government Urges Intel to Boost Domestic Chip Production Amid Concerns Over Taiwan Reliance
**Washington, D.C.** – The Biden administration is pushing for increased domestic chip production, particularly in light of the United States’ heavy reliance on Taiwan’s TSMC for advanced chips. This comes after a recent meeting between Commerce Secretary Gina Raimondo and Intel CEO Pat Gelsinger, where Gelsinger reportedly expressed concerns over this dependence.
Intel, struggling to keep up with the global chip manufacturing giants like Samsung and TSMC, is aggressively building chip foundries across the US. The company aims to transition into a foundry business, producing chips for other companies on a contractual basis.
To support this initiative, Intel has already received $8.5 billion from the CHIPS Act and is in line for another $11 billion in loans. However, the disbursement of these funds has been delayed, prompting speculation that Intel might receive some funding before the end of the year.
The government’s push for local chip production comes amidst heightened geopolitical tensions in the region. The US is concerned about its reliance on Taiwan for vital components, prompting efforts to bolster domestic chip production and reduce vulnerability.
Secretary Raimondo is reported to have met with several major tech companies, including Apple, Amazon, Google, and Broadcom, to promote the idea of sourcing chips locally.
The Biden administration’s support for Intel is seen as a strategic move to ensure the company’s success as a foundry business, which would ultimately strengthen domestic chip production and safeguard the US from potential supply chain disruptions.
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