logologologologo
  • Home
  • Business
  • Markets
  • Exchange
  • Investment
  • Personal Finance

Intel, Micron CEOs to make case for U.S. semiconductor subsides: testimony

The chief executives of Intel and Micron will make the case today for U.S. government subsidies to boost semiconductor manufacturing before the U.S. Senate Commerce Committee.

Intel Chief Executive Officer Pat Gelsinger will tell the committee “there is an urgent need for the federal government to incentivize more private sector investment in the United States to enable a resilient and innovative semiconductor ecosystem”.

Micron Chief Executive Officer Sanjay Mehrotra says in his written testimony that approving $52 billion for chips “will kick start investment in workforce development, R&D, innovation, and expansion of manufacturing in the near term.”

A persistent industry-wide shortage of chips has disrupted production in the automotive and electronics industries, forcing some firms to scale back production.

Both the Senate and House have passed versions of legislation approving $52 billion in chip subsidies in provisions known as the CHIPS Act but differ on other provisions aimed at boosting U.S. competitiveness with China.

Commerce Secretary Gina Raimondo met with senators on Tuesday and urged quick action on chips.

“The situation now in America is urgent,” Raimondo said. “We have to decrease our dependence on other countries including Taiwan on chips and the way to do that is to make more chips in America.”

Mehrotra will also call on Congress to pass “the refundable investment tax credit … to create a long-term incentive that would invigorate domestic manufacturing in the semiconductor industry.”

Micron has announced plans to invest more than $150 billion globally over the next decade in leading-edge memory manufacturing and R&D and is considering building U.S. new fabs.

Building those new fabs in the United States “require close coordination with federal and state policies to ensure the economic viability of our operations,” Mehrotra’s testimony says, adding “we anticipate that a significant amount of federal funding will be required to make a mega-fab viable.”

Intel recently announced plans to invest $20 billion in Ohio to build two new mega fabs that could grow to eight mega fabs

and $100 billion “assuming support from the CHIPS Act,” Gelsinger’s testimony says.

Lam Research Chief Executive Officer Tim Archer, who heads the semiconductor manufacturing equipment company, will tell lawmakers new U.S. fabs “will depend on semiconductor manufacturing equipment and materials.”

Archer says a Commerce Department grant program should be able to “provide incentives across the entire value chain” and support an “all-of-ecosystem approach.”

PACCAR Chief Executive Officer Preston Feight will tell the committee the trucking manufacturing industry has been forced at times to pay brokers “20 to 30 times” the contract costs to get chips.

Feight’s testimony suggests “companies requesting CHIPS Act funding be required to meet the needs of American critical businesses, including truck manufacturers, before they are approved to receive U.S. taxpayer dollars.”

Related posts

February 1, 2023

Bitcoin closes out best January since 2013


Read more

Categories

  • Business
  • Content
  • Exchange
  • Inflation
  • Investment
  • Markets
  • Personal Finance
  • Technology
  • Uncategorized

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021

Recent Posts

  • Bitcoin closes out best January since 2013
  • More oil is coming
  • Samsung to keep up chip investment, undeterred by 8-year-low profit
  • TikTok faces a daunting calendar ahead in Washington
  • Think Chevron’s Profit Was Obscene? 5 Companies Will Blow It Away

About Us

The Alpha Cut a Vida Street LLC Company
1404 N. Ronald Reagan Blvd.
Suite 1120
Longwood, FL 32750

Link

(843) 256-4375
https://thealphacut.com

Why Us

Terms & Privacy
Policy & Procedure
Disclaimer

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only.
Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
All data in this communication is provided for informational purposes only and is not intended for trading or investing purposes. We expressly disclaim the accuracy, adequacy, or completeness of any data and content provided by financial exchanges, individual issuers, their respective affiliates and business partners and shall not be liable for any errors, omissions or other defects in, delays or interruptions in such data, or for any actions taken in reliance thereon. You agree not to copy, modify, reformat, download, store, reproduce, reprocess, transmit or redistribute any data or information found herein or use any such data or information in a commercial enterprise without obtaining our prior written consent.
We make no express or implied warranties or representations and shall have no liability whatsoever with respect to any data contained herein. The data may not be further redistributed or used to create indices or other financial products. This report and the views expressed herein are subject to change at any time based upon market or other conditions (such as domestic and global economic trends) and are current as of the date of publication hereof. The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity.
We emphasize that Investment in the securities of smaller companies can involve greater risk than is generally associated with investment in larger, more established companies, and can result in significant capital losses that may have a detrimental effect on the value of your investments.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth.As with any structuring of a portfolio of investments, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
The information, analysis and opinions expressed herein are for general, impersonal information only and are not intended to provide specific advice or recommendations for any individual entity.

copyright © Alpha Cut 2021. All Right Reserved
The Alpha Cut a Vida Street LLC Company