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

By David Shepardson

WASHINGTON (Reuters) – The chief executives of Intel and Micron will make the case Wednesday for U.S. authorities subsidies to spice up semiconductor manufacturing earlier than the U.S. Senate Commerce Committee.

Intel Chief Govt Officer Pat Gelsinger will inform the committee “there’s an pressing want for the federal authorities to incentivize extra non-public sector funding in the US to allow a resilient and revolutionary semiconductor ecosystem,” beforehand unreported testimony seen by Reuters says.

Micron Chief Govt Officer Sanjay Mehrotra says in his written testimony that approving $52 billion for chips “will kick begin funding in workforce improvement, R&D, innovation, and growth of producing within the close to time period.”

A persistent industry-wide scarcity of chips has disrupted manufacturing within the automotive and electronics industries, forcing some companies to reduce manufacturing.

Each the Senate and Home have handed variations of laws approving $52 billion in chip subsidies in provisions referred to as the CHIPS Act however differ on different provisions aimed toward boosting U.S. competitiveness with China.

Commerce Secretary Gina Raimondo met with senators on Tuesday and urged fast motion on chips.

“The state of affairs now in America is pressing,” Raimondo stated. “We have now to lower our dependence on different nations together with Taiwan on chips and the way in which to do this is to make extra chips in America.”

Mehrotra can even name on Congress to go “the refundable funding tax credit score … to create a long-term incentive that will invigorate home manufacturing within the semiconductor {industry}.”

Micron has introduced plans to speculate greater than $150 billion globally over the following decade in modern reminiscence manufacturing and R&D and is contemplating constructing U.S. new fabs.

Constructing these new fabs in the US “require shut coordination with federal and state insurance policies to make sure the financial viability of our operations,” Mehrotra’s testimony says, including “we anticipate {that a} important quantity of federal funding will probably be required to make a mega-fab viable.”

Intel not too long ago introduced plans to speculate $20 billion in Ohio to construct two new mega fabs that might develop to eight mega fabs

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

Lam Analysis Chief Govt Officer Tim Archer, who heads the semiconductor manufacturing gear firm, will inform lawmakers new U.S. fabs “will rely upon semiconductor manufacturing gear and supplies.”

Archer says a Commerce Division grant program ought to be capable to “present incentives throughout all the worth chain” and help an “all-of-ecosystem strategy.”

PACCAR Chief Govt Officer Preston Feight will inform the committee the trucking manufacturing {industry} has been compelled at occasions to pay brokers “20 to 30 occasions” the contract prices to get chips.

Feight’s testimony suggests “firms requesting CHIPS Act funding be required to fulfill the wants of American important companies, together with truck producers, earlier than they’re accredited to obtain U.S. taxpayer {dollars}.”

(Reporting by David Shepardson, Enhancing by Franklin Paul, Bernard Orr)