However, a few in the U.S. semiconductor industry believe that the version of the CHIPS Act set to be voted on by the Senate as early as tomorrow unfairly benefits Intel. According to Reuters, the bill’s $52 billion in subsidies and tax breaks will provide the majority of the benefits to companies like Intel. The majority of Intel’s semiconductors are designed and manufactured in the United States, and the CHIPS Act strongly favors off-setting the cost of building new production plants in the United States. AMD and NVIDIA are Intel’s most direct competitors in the client computing, graphics, and server/HPC markets. While AMD and NVIDIA are based in the United States and design their microprocessors, they outsource chip production to companies such as TSMC and Samsung. As a result, they would not be able to fully benefit from the $52 billion windfall from the United States government. Intel CEO Pat Gelsinger has pushed hard for the CHIPS Act to pass, even threatening to pull out of the Ohio fab if the bill fails. Moreover, Pat has also highlighted the benefits of the CHIPS Act in a tweet and insisted to see it passed:
— Pat Gelsinger (@PGelsinger) July 7, 2022 The United States House of Representatives is currently debating a version of the FABS Act that would benefit companies such as AMD and NVIDIA by providing tax breaks for aspects of semiconductor design. Even if those provisions were added, Intel would still benefit the most from the CHIPS and FABS Acts than its competitors.
