United States Senate Immigration Competition Act

The approval of the chip bill has been delayed, and chip manufacturers may give up building factories in the United States.

The approval of the chip bill has been delayed, and chip manufacturers may give up building factories in the United States. At present, Intel said that due to the delay of the chip bill, the factory construction will be postponed indefinitely. The approval of the chip bill has been delayed, and chip manufacturers may give up building factories in the United States.

The approval of the chip bill has been delayed, and chip manufacturers may give up building factories in the United States 1 According to the Nikkei Asia report, due to the increased uncertainty in the approval of the CHIPS for America bill, which subsidizes new investments, major global chip manufacturers, including Intel and TSMC, have revised their plans to expand semiconductor production capacity in the United States.

Intel suspended the construction of a $20 billion chip factory in Ohio, waiting for Congress to pass the bill. The company told Nikkei Asia that it didn't know when the factory would be completed because the approval of funds for the plan had been slow.

In May 2020, TSMC announced the construction of a chip factory in Arizona, with a value of 654.38+0.2 billion US dollars, but recently pointed out that if there is no subsidy, the construction time will be longer. The company plans to start production in 2024.

Gong Mingxin, director of the so-called "National Development Committee" in Taiwan Province Province and a member of TSMC's board of directors, said that the company started construction because it believed that "the chip bill would be passed in Congress".

The "American Chip Act" aims to strengthen the American chip manufacturing industry and reduce dependence on parts made in China by providing generous tax breaks and other subsidies.

GlobalFoundries, an American chip foundry, told Nikkei Asia that the time to build a planned $654.38 billion chip factory in new york depends on the passage of the bill.

According to foreign media reports, American and Asian chipmakers warned that if the Washington authorities still failed to pass the $52 billion CHIPS for America bill, they would have to postpone or reduce their investment in the United States.

It is reported that the American Chip Act promises to provide tax breaks and other incentives for chip companies investing in the United States. In the global chip shortage environment, the bill is regarded as a vital measure for the US economy and national security interests. Some large-scale semiconductor projects recently announced by the United States are based on the Act to varying degrees.

The groundbreaking ceremony for Intel's $20 billion chip factory in Ohio was originally scheduled to be held on July 22nd, but at present, the company said that due to the delay of the chip bill, the factory construction will be postponed indefinitely.

Singh, the world's third largest chip foundry, also said that it plans to invest 654.38 billion US dollars to build a chip factory in upstate New York, but the delay in passing the chip bill has affected the speed and pace of the company's expansion of production capacity in the United States.

In addition, Asian chip makers also said that in view of the high operating costs, the bill also had a major impact on their transfer of production to the United States. Among them, TSMC has started to build a chip factory worth $654.38+0.2 billion in Arizona. The company said that the speed of construction will depend on US subsidies.

At the company's annual general meeting of shareholders held in June this year, TSMC's chairman said that the cost of building a chip factory in the United States was higher than previously estimated, and called on the US government to expand its planned support for the chip industry to domestic and foreign companies.

In this regard, supporters of the bill hope to make a breakthrough in July. If Congress fails to achieve this goal during its recess in August, it will enter the mid-term election season after July. If it is involved, the road ahead may face more obstacles. Many companies are more outspoken in their support for the bill, and executives have also visited the US Congress, believing that the next few weeks will be crucial to push the bill through.

The approval of the chip bill has been delayed, and chip manufacturers may give up building factories in the United States. 3 The American "domestic chip" plan may be frustrated.

Earlier, Intel announced that it would postpone the groundbreaking ceremony of the new semiconductor factory scheduled to be held in Ohio on July 22nd. In this regard, Ohio Governor Mike DeWine recently responded that despite this, he still believes that Intel's plan to build a factory in Ohio "will not change."

At the end of June, Pat Gelsinger, CEO of Intel, said that if the US Congress could not approve the $52 billion government subsidy promised in the Chip Act, Intel might choose to expand chip production in Europe instead of the United States. Gosinger said that the progress of building a factory in the United States will depend on whether Congress passes this legislation.

"(The United States passed the' Chip Act') will send a strong signal to industry, science and technology and the world, showing the seriousness of the United States in establishing a chip industry in its own country." Therefore, "if the funds promised by Congress are not in place, it is meaningless to continue to promote the new factory."

Intel still "votes with its feet"

In June 5438+10, Intel announced plans to set up two chip factories in Columbus, the capital of Ohio, and lick County in the eastern suburbs. One is used to produce the chips needed by Intel's processors, and the other is mainly engaged in chip foundry business, that is, manufacturing chips designed by other companies.

Intel previously said that it didn't just want to build one or two chip processing plants in Ohio, but "wanted to build the world's largest chip production base centered on two chip parks in Ohio".

In response to Intel's announcement to postpone the construction, Devon believes that this is Intel's negotiation strategy, and they can put pressure on Congress through this strategy to pass the bill as soon as possible. "I don't think they will negotiate with Congress after the construction. Now they have chips, of course, it may also be to attract the attention of the outside world. " Devon said.

However, Devon also said that Intel has been clearly suggesting to officials in Ohio that the size of local factories will depend on government subsidies under the Chip Act.

In addition to Intel, CEOs of other American technology companies such as Google, Amazon and Microsoft issued a joint open letter last week, urging the US Congress to pass the "Chip Bill" as soon as possible. US Commerce Secretary Raimondeau said that the heads of many technology companies have made it clear that their investment will depend on whether Congress passes the chip bill. "This also means that Congress must pass the relevant bill before the summer recess, otherwise, this (investment) agreement will be invalid." Raymond said more.

* * * and the Party: As long as the Democratic Party "plays tricks", the chip bill will be difficult to achieve.

The "Chip Act" of the United States aims to stimulate investment in the semiconductor industry in the United States. Although the U.S. House of Representatives passed the House version of the Chip Act in 2002 1 and1,and the Senate also passed the American Innovation and Competition Act containing related bills, the Senate and the House of Representatives subsequently entered a long stage of negotiation, compromise and stalemate. So far, the two parties have not reached a unified version.

In the version of the "Chip Act" in the House and Senate, there are still obvious differences between the two parties in the fields of immigration and government research and development funds. Senate Minority Leader and Republican Senator McConnell said on Friday that he would not vote for the American Innovation and Competition Act as long as Democrats tied the chip bill to another climate and prescription drug budget plan promoted by Democrats.

McConnell's "warning" makes the Democratic Party uneasy, because the Congress is currently in recess and will not resume until mid-July, and it is unlikely that the Congress, which entered the summer recess in August, will pass a large-scale legislative agenda before the mid-term election in June 165438+ 10.

McConnell said that he opposed the Democratic version, because the bill contains a large number of expenditure items unrelated to the Chip Act, which will undoubtedly continue to aggravate the unprecedented inflation in the United States. "Even if this version is passed today, they (the Democratic Party) will hope to pass more spending bills." McConnell said.