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Congress seeks compromise to boost computer chip industry

Daniel Nenni

Admin
Staff member
WASHINGTON (AP) — A global computer chip shortage has made it harder for consumers to get their hands on cars, computers and other modern-day necessities, so Congress is looking to boost chip manufacturing and research in the United States with billions of dollars from the federal government.

Both the House and the Senate have passed major legislation on the matter, and the effort is one of lawmakers’ final opportunities before the November elections to show voters they are addressing the nation’s strained supply chains.

Now they have to work out considerable differences in the two bills. And Senate Republicans are already digging in before the negotiations formally begin.

President Joe Biden has made the semiconductor legislation a top priority, but he’ll need the support of 10 Senate Republicans, and perhaps more, to get a bill to his desk. Senate Republican leader Mitch McConnell emphasized that point when congressional leaders recently announced which lawmakers will serve on the committee that works to reconcile the two bills.

“Without major concessions and changes from House Democrats, this legislation has no chance of becoming law,” McConnell said.

House Democrats say their voices need to be heard during negotiations.

“We need to make sure that everyone has input,” said Rep. Suzan DelBene, D-Wash., chair of the New Democrat Coalition, a group that has 19 members participating in negotiations. “We have a strong bill in the House, and I think there’s important components there that the Senate should also consider.”

 
The Senate bill provides $29 billion over five years to a new directorate focused on strengthening U.S. leadership in artificial intelligence, semiconductors, robotics and other cutting-edge technologies.
The House bill provides $13.3 billion over five years to a new directorate for science and engineering solutions. It lists climate change, environmental sustainability and social and economic inequality as part of the directorate’s focus.

Big surprise they are tripped up by buzzwords and opportunism. To underscore how pathetic this is, the money in these bills is comparable to the excess funding Congress insists on giving the military every single year.

My bet is if it doesn't wind up in the same bin as "Build Back Better" it'll be just another transfer of wealth from taxpayers to shareholders and a series of Potemkin semiconductor hubs scattered across our post-industrial wastelands, constructed not because they make sense but because some constituency needed pandering.

This is the oldest and most powerful gerontocracy in human history wielding a rotted out 18th century legislative model, they can barely pass their own bowels.
 
First You will need new president. Even when i am not counting things he screwed... He is just too divisive...


“Over the last three years, we have doubled our wafer volume capacity, and that was a significant investment. Moving forward, we’re not stopping… We are continuing to invest into factory capacity to ensure we can keep up with the growing needs of our customers,” says Keyvan Esfarjani, senior vice president and general manager of Manufacturing and Operations at Intel.
  • December 23, 2020

So, why they stopped after administration changed? Why they suddenly needs $50B...
 
First You will need new president. Even when i am not counting things he screwed... He is just too divisive...



  • December 23, 2020

So, why they stopped after administration changed? Why they suddenly needs $50B...
Please don't blame Intel's troubles to anyone in the White House, from Obama, Trump, to Biden.

1. For the past ten years Intel's CEOs and Board of Directors have been busily executing stock buy back program. Instead of investing in R&D and manufacturing capabilities, Intel decided that to artificially pump their stock price higher is more important than anything else. Now Intel is waiting for taxpayers' money to save them in order to save US?

"From 2012 through 2021, Intel spent $67.9 billion to buy stocks and reduced outstanding shares for about 1 billion shares. What has Intel achieved? Now Intel is forecasted to have negative cash flow in 2022 and needs to use Sell and Leaseback to improve liquidity".

Source: Post in thread 'Intel Investor Meeting Keynote' https://semiwiki.com/forum/index.php?threads/intel-investor-meeting-keynote.15543/post-51014

2. Back in 2012 Intel was the largest investor at ASML for the EUV development among the big three (Intel 15%, Samsung 5%, and TSMC 3%). Intel (as an ASML insider) blamed ASML EUV tool was not mature enough to use and/or did not match Intel's schedule to be implemented. Now in 2022 and probably for the next several years Intel doesn't have enough EUV tools to compete.

3. The list of Intel's screwups can also include:

A. Rejected Apple's request to make iPhone processors

B. Several failed on-off-on-off ventures in RISC and ARM related products. Intel's bad execution basically killed Intel's hope to compete in the smartphone and low power application market.

C. The infamous "contra revenue” scheme that wasted billions.


We can blame anything to White House but please don't blame a spoiled kid's tough life to those past and current US Presidents.
 
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Why not? They are creating environment for companies...

I am aware of Intel's screw-ups, but regardless, they still managed double capacity between 2017-2020. While maintaining r&d (https://www.statista.com/statistics/263562/intel-expenditure-on-research-and-development-since-2004/), buybacks, return to investors...

Obama - US fabs (mainly Arizona) postponed. Prioritized investments in chinese fab.
Trump - ...
Biden - at this point just talks (renaming, rebranding) and nothing really done. Spending billions in foundries on questionable products (for example mining ASICs)

It is about politics and You should hold them accountable if You want things to get better...
 
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