The global chip shortage that's kept automobiles, iPads and game consoles in short supply is nothing compared to what could happen if the global economy's key maker of high-end microchips, based in Taiwan, is jeopardized.
Industry observers say Intel has not yet successfully built chips that can rival TSMC's 5-nanometer product.
"We are completely in that game, and that's not slowing down," Al Thompson, Intel vice president of U.S. government relations told Axios. "From a manufacturing and technological development standpoint, we're on track to be making leading-edge chips here within the next couple of years."the chip shortage experienced by the auto industry is for older, less advanced chips and is being fueled by a mismatch in demand and supply.
At the start of the pandemic, "there was a sense that auto demand was going to fall off a cliff, so they stopped producing," Ed Mills, Washington policy analyst with Raymond James, told Axios.What's next:that could see a vote as early as this week that would in part dedicate $52 billion in funding for domestic semiconductor production.
Intel's Thompson tells Axios the funding will allow the company to accelerate its U.S. projects and potentially expand them, but it will take time to build.The funding, which the Senate approved last year, is meant to address long-term chip challenges, not the short-term crisis. “This is about ensuring more of the chips that are so critical to our country and our economy are researched, designed, and manufactured domestically over the long term, so we can make our supply chains more resilient and avert the next chip shortage," Dan Rosso, spokesperson for the Semiconductor Industry Association, told Axios.
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