REUTERS
"TSMC wins $6.6 bln US subsidy for Arizona chip production"
By David Shepardson and Stephanie Kelly
April 8, 2024
WASHINGTON, April 8 (Reuters) - The U.S. Commerce Department said on Monday it would award Taiwan Semiconductor Manufacturing Co's U.S. unit a $6.6 billion subsidy for advanced semiconductor production in Phoenix, Arizona and up to $5 billion in low-cost government loans.
TSMC agreed to expand its planned investment by $25 billion to $65 billion and to add a third Arizona fab by 2030, Commerce said in announcing the preliminary award.
The Taiwanese company will produce the world's most advanced 2 nanometer technology at its second Arizona fab expected to begin production in 2028, the department said.
"These are the chips that underpin all artificial intelligence, and they are the chips that are necessary components for the technologies that we need to underpin our economy, but frankly, a 21st century military and national security apparatus," Commerce Secretary Gina Raimondo said in a statement.
TSMC, the world's largest contract chipmaker and a major supplier to Apple and Nvidia, had previously announced plans to invest $40 billion in Arizona.
TSMC expects to begin high-volume production in its first U.S. fab there by the first half of 2025, Commerce said.
The $65 billion-plus investment by TSMC is the largest foreign direct investment in a completely new project in U.S. history, the department said.
Congress in 2022 approved the Chips and Science Act to boost domestic semiconductor output with $52.7 billion in research and manufacturing subsidies.
Lawmakers also approved $75 billion in government loan authority.
TSMC Arizona has also committed to support the development of advanced packaging capabilities through partners in the U.S. to allow customers to purchase advanced chips that are made entirely on U.S. soil, the department said, adding 70% of TSMC customers were U.S. companies.
TSMC CEO C.C. Wei said the company would help U.S. tech firms "unleash their innovations by increasing capacity for leading-edge technology through TSMC Arizona."
Commerce expects the projects will create 6,000 direct manufacturing jobs and 20,000 construction jobs.
The department said 14 direct TSMC suppliers plan to construct or expand U.S. plants.
At full capacity, TSMC's three fabs in Arizona will manufacture tens of millions of leading-edge chips in 5G/6G smartphones, autonomous vehicles, and AI data center servers, the department said.
Through its Arizona fabs, TSMC will support key customers like Apple, Nvidia, Advanced Micro Devices and Qualcomm "by addressing their leading-edge capacity demand, mitigating supply chain concerns, and enabling them to compete effectively in the ongoing digital transformation era," the department added.
TSMC said in a separate statement that its Arizona factories aim to achieve a 90% water recycling rate, adding that the company has started the design phase of building a water reclamation plant with a goal of achieving "near zero liquid discharge".
Commerce last month announced $8.5 billion in grants and up to $11 billion in loans for Intel to subsidize leading-edge chip production from the same program.
The department is expected to unveil an award for South Korea's Samsung Electronics as soon as next week, sources said.
Commerce declined to comment.
Samsung did not respond immediately to a request for comment.
Reporting by David Shepardson; Additional reporting by Alexandra Alper, and Ben Blanchard in Taipei; Editing by Jamie Freed, Kirsten Donovan
https://www.reuters.com/technology/tsmc ... 024-04-08/
CHIPS
Re: CHIPS
REUTERS
"US to award Samsung up to $6.6 billion chip subsidy for Texas expansion, sources say"
By Alexandra Alper
April 9, 2024
WASHINGTON, April 8 (Reuters) - The Biden administration plans to announce it is awarding more than $6 billion to South Korea's Samsung next week to expand its chip output in Taylor, Texas, as it seeks to ramp up chipmaking in the U.S., two people familiar with the matter said.
The subsidy, which will be unveiled by Commerce Department Secretary Gina Raimondo, will go toward construction of four facilities in Taylor, including one $17 billion chipmaking plant that Samsung announced in 2021, another factory, an advanced packaging facility and a research and development center, one of the sources said.
It will also include an investment in another undisclosed location, the source said, adding that Samsung will more than double its U.S. investment to over $44 billion as part of the deal.
The Commerce Department and Samsung declined to comment.
Texas Governor Greg Abbott's office did not respond to requests for comment.
One of the sources said it would be the third largest of the program, just behind Taiwan's TSMC, which was awarded $6.6 billion on Monday and agreed to expand its investment by $25 billion to $65 billion and to add a third Arizona factory by 2030.
The announcement will cap off a string of major Chips and Science grants in quick succession as the U.S. seeks to expand domestic chip production and lure away capital that might have been used to build plants in China and the region.
Congress in 2022 approved the Chips and Science Act to boost domestic semiconductor output with $52.7 billion in research and manufacturing subsidies.
Lawmakers also approved $75 billion in government loan authority, but one of the sources said Samsung plans to take no loans.
The CHIPS Act's goal is to reduce reliance on China and Taiwan, as the share of global semiconductor manufacturing capacity in the U.S. has fallen from 37% in 1990 to 12% in 2020, according to the Semiconductor Industry Association.
U.S. President Joe Biden will not attend the event, the two people said.
He faces a tough fight to win a second term in November against former President and Republican rival Donald Trump.
Greg Abbott, the Republican governor of Texas was invited to attend, one of the people added.
While both TSMC and Intel, which was awarded $8.5 billion to expand its U.S. chip output last month, will expand production in the key swing state of Arizona, Samsung' expansion in reliably Republican Texas is seen as less likely to help Biden at the polls.
Reporting by Alexandra Alper; additional reporting by David Shepardson Editing by Marguerita Choy and David Gregorio
https://www.reuters.com/technology/sams ... 024-04-08/
"US to award Samsung up to $6.6 billion chip subsidy for Texas expansion, sources say"
By Alexandra Alper
April 9, 2024
WASHINGTON, April 8 (Reuters) - The Biden administration plans to announce it is awarding more than $6 billion to South Korea's Samsung next week to expand its chip output in Taylor, Texas, as it seeks to ramp up chipmaking in the U.S., two people familiar with the matter said.
The subsidy, which will be unveiled by Commerce Department Secretary Gina Raimondo, will go toward construction of four facilities in Taylor, including one $17 billion chipmaking plant that Samsung announced in 2021, another factory, an advanced packaging facility and a research and development center, one of the sources said.
It will also include an investment in another undisclosed location, the source said, adding that Samsung will more than double its U.S. investment to over $44 billion as part of the deal.
The Commerce Department and Samsung declined to comment.
Texas Governor Greg Abbott's office did not respond to requests for comment.
One of the sources said it would be the third largest of the program, just behind Taiwan's TSMC, which was awarded $6.6 billion on Monday and agreed to expand its investment by $25 billion to $65 billion and to add a third Arizona factory by 2030.
The announcement will cap off a string of major Chips and Science grants in quick succession as the U.S. seeks to expand domestic chip production and lure away capital that might have been used to build plants in China and the region.
Congress in 2022 approved the Chips and Science Act to boost domestic semiconductor output with $52.7 billion in research and manufacturing subsidies.
Lawmakers also approved $75 billion in government loan authority, but one of the sources said Samsung plans to take no loans.
The CHIPS Act's goal is to reduce reliance on China and Taiwan, as the share of global semiconductor manufacturing capacity in the U.S. has fallen from 37% in 1990 to 12% in 2020, according to the Semiconductor Industry Association.
U.S. President Joe Biden will not attend the event, the two people said.
He faces a tough fight to win a second term in November against former President and Republican rival Donald Trump.
Greg Abbott, the Republican governor of Texas was invited to attend, one of the people added.
While both TSMC and Intel, which was awarded $8.5 billion to expand its U.S. chip output last month, will expand production in the key swing state of Arizona, Samsung' expansion in reliably Republican Texas is seen as less likely to help Biden at the polls.
Reporting by Alexandra Alper; additional reporting by David Shepardson Editing by Marguerita Choy and David Gregorio
https://www.reuters.com/technology/sams ... 024-04-08/
Re: CHIPS
REUTERS
"US lawmakers angry after Huawei unveils laptop with new Intel AI chip"
By Reuters
April 12, 2024
WASHINGTON, April 12 (Reuters) - Republican U.S. lawmakers on Friday criticized the Biden administration after sanctioned Chinese telecoms equipment giant Huawei unveiled a laptop this week powered by an Intel AI chip.
The United States placed Huawei on a trade restriction list in 2019 for violating Iran sanctions, part of a broader effort to hobble Beijing's technological advances.
Placement on the list means the company's suppliers have to seek a special, difficult-to-obtain license before shipping to it.
One such license, issued by the Trump administration, has allowed Intel to ship central processors to Huawei for use in laptops since 2020.
China hardliners had urged the Biden administration to revoke that license, but many grudgingly accepted that it would expire later this year and not be renewed.
Huawei's unveiling Thursday of its first AI-enabled laptop, the MateBook X Pro powered by Intel's new Core Ultra 9 processor, shocked and angered them, because it suggested to them that the Commerce Department had approved shipments of the new chip to Huawei.
“One of the greatest mysteries in Washington, DC is why the Department of Commerce continues to allow U.S. technology to be shipped to Huawei" Republican Congressman Michael Gallagher, who chairs the House of Representatives select committee on China, said in a statement to Reuters.
A source familiar with the matter said the chips were shipped under a preexisting license.
They are not covered by recent broad-cased restrictions on AI chip shipments to China, the source and another person said.
The Commerce Department and Intel declined to comment.
Huawei did not immediately respond to requests for comment.
The reaction is a sign of growing pressure on the Biden administration to do more to thwart Huawei's rise, nearly five years after it was added to a trade restriction list.
In August, it shocked the world with a new phone powered by a sophisticated chip manufactured by sanctioned Chinese chipmaker SMIC, becoming a symbol of China's technological resurgence despite Washington's ongoing efforts to cripple its capacity to produce advanced semiconductors.
At a Senate subcommittee hearing this week, Kevin Kurland, an export enforcement official, said Washington's restrictions on Huawei have had a "significant impact" on it access to U.S. technology.
He also stressed that the goal was not necessarily to stop Huawei from growing but to keep it from misusing U.S. technology for "malign activities."
But the remarks did little to stem frustration among Republican China hawks following the news about Huawei's new laptop.
"These approvals must stop," Republican congressman Michael McCaul said in a statement to Reuters.
"Two years ago, I was told licenses to Huawei would stop."
"Today, it doesn’t seem as though the policy has changed."
Reporting by Alexandra Alper and Karen Freifeld; Editing by Leslie Adler and Stephen Coates
https://www.reuters.com/technology/us-l ... 024-04-12/
"US lawmakers angry after Huawei unveils laptop with new Intel AI chip"
By Reuters
April 12, 2024
WASHINGTON, April 12 (Reuters) - Republican U.S. lawmakers on Friday criticized the Biden administration after sanctioned Chinese telecoms equipment giant Huawei unveiled a laptop this week powered by an Intel AI chip.
The United States placed Huawei on a trade restriction list in 2019 for violating Iran sanctions, part of a broader effort to hobble Beijing's technological advances.
Placement on the list means the company's suppliers have to seek a special, difficult-to-obtain license before shipping to it.
One such license, issued by the Trump administration, has allowed Intel to ship central processors to Huawei for use in laptops since 2020.
China hardliners had urged the Biden administration to revoke that license, but many grudgingly accepted that it would expire later this year and not be renewed.
Huawei's unveiling Thursday of its first AI-enabled laptop, the MateBook X Pro powered by Intel's new Core Ultra 9 processor, shocked and angered them, because it suggested to them that the Commerce Department had approved shipments of the new chip to Huawei.
“One of the greatest mysteries in Washington, DC is why the Department of Commerce continues to allow U.S. technology to be shipped to Huawei" Republican Congressman Michael Gallagher, who chairs the House of Representatives select committee on China, said in a statement to Reuters.
A source familiar with the matter said the chips were shipped under a preexisting license.
They are not covered by recent broad-cased restrictions on AI chip shipments to China, the source and another person said.
The Commerce Department and Intel declined to comment.
Huawei did not immediately respond to requests for comment.
The reaction is a sign of growing pressure on the Biden administration to do more to thwart Huawei's rise, nearly five years after it was added to a trade restriction list.
In August, it shocked the world with a new phone powered by a sophisticated chip manufactured by sanctioned Chinese chipmaker SMIC, becoming a symbol of China's technological resurgence despite Washington's ongoing efforts to cripple its capacity to produce advanced semiconductors.
At a Senate subcommittee hearing this week, Kevin Kurland, an export enforcement official, said Washington's restrictions on Huawei have had a "significant impact" on it access to U.S. technology.
He also stressed that the goal was not necessarily to stop Huawei from growing but to keep it from misusing U.S. technology for "malign activities."
But the remarks did little to stem frustration among Republican China hawks following the news about Huawei's new laptop.
"These approvals must stop," Republican congressman Michael McCaul said in a statement to Reuters.
"Two years ago, I was told licenses to Huawei would stop."
"Today, it doesn’t seem as though the policy has changed."
Reporting by Alexandra Alper and Karen Freifeld; Editing by Leslie Adler and Stephen Coates
https://www.reuters.com/technology/us-l ... 024-04-12/
Re: CHIPS
REUTERS
"TSMC's shares slide nearly 7% in Taipei on global chip outlook concerns"
By Reuters
April 19, 2024
TAIPEI, April 19 (Reuters) - TSMC's Taipei-listed shares tumbled 6.7% on Friday following the company's first-quarter earnings report in which it dialed back its expectations for chip sector growth and did not revise up its capital spending plans, contrary to expectations.
Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker, forecast second-quarter sales may rise as much as 30% as it rides a wave of demand chips used in artificial intelligence (AI) applications.
Its first-quarter profit also beat estimates.
But it left its capital spending plans for this year unchanged at between $28 billion and $32 billion and reiterated it expected 2024 revenue to rise in the low- to mid-20% range in U.S. dollar terms.
It lowered its outlook for the global semiconductor industry excluding memory to a growth rate of around 10% from a previous forecast of more than 10%.
TSMC, a major supplier to Apple and Nvidia, also downgraded its growth forecast for the global foundry sector to a mid-to-high teens percentage gain from a previous projection of around 20%.
Allen Huang, vice president of Mega International Investment in Taipei, said the market was reacting to the revised outlook for the semiconductor industry, adding that TSMC had been expected to increase capital expenditure this year for high-end packaging.
"If capital expenditure was only maintained at the previous level, it means that profit is not as expected," he said.
Another Taiwan fund manager, who asked not to be identified, said given TSMC's recent stock rally investors had high expectations heading into first-quarter earnings.
"Its capex has not been so aggressive, and the percentage of advanced process technologies revenue compared to overall revenue is still pretty low," the manager said.
TSMC's poor share price performance dragged on the broader Taipei market which closed down 3.8%, losing 774 points - the most it has lost in a single day.
Sentiment was also hit by a rise in tensions between Israel and Iran.
TSMC has other challenges, too.
Speaking on Friday after being given an honour for his services to Taiwan, TSMC's retired and much revered founder Morris Chang said the company's current leadership needed "great wisdom" to navigate challenges to "dying" globalisation given how the firm had benefited so much from free trade.
"TSMC also faces resources challenges: land, water, power, talent, which need continued support from the government and all others," he said at the presidential office in Taipei, referring to limitations Taiwan's tech industry has long worried about.
Reporting by Ben Blanchard and Yimou Lee; Additional reporting by Faith Hung, Roger Tung and Jeanny Kao; Editing by Shri Navaratnam and Edwina Gibbs
https://www.reuters.com/technology/tsmc ... 024-04-19/
"TSMC's shares slide nearly 7% in Taipei on global chip outlook concerns"
By Reuters
April 19, 2024
TAIPEI, April 19 (Reuters) - TSMC's Taipei-listed shares tumbled 6.7% on Friday following the company's first-quarter earnings report in which it dialed back its expectations for chip sector growth and did not revise up its capital spending plans, contrary to expectations.
Taiwan Semiconductor Manufacturing Co, the world's largest contract chipmaker, forecast second-quarter sales may rise as much as 30% as it rides a wave of demand chips used in artificial intelligence (AI) applications.
Its first-quarter profit also beat estimates.
But it left its capital spending plans for this year unchanged at between $28 billion and $32 billion and reiterated it expected 2024 revenue to rise in the low- to mid-20% range in U.S. dollar terms.
It lowered its outlook for the global semiconductor industry excluding memory to a growth rate of around 10% from a previous forecast of more than 10%.
TSMC, a major supplier to Apple and Nvidia, also downgraded its growth forecast for the global foundry sector to a mid-to-high teens percentage gain from a previous projection of around 20%.
Allen Huang, vice president of Mega International Investment in Taipei, said the market was reacting to the revised outlook for the semiconductor industry, adding that TSMC had been expected to increase capital expenditure this year for high-end packaging.
"If capital expenditure was only maintained at the previous level, it means that profit is not as expected," he said.
Another Taiwan fund manager, who asked not to be identified, said given TSMC's recent stock rally investors had high expectations heading into first-quarter earnings.
"Its capex has not been so aggressive, and the percentage of advanced process technologies revenue compared to overall revenue is still pretty low," the manager said.
TSMC's poor share price performance dragged on the broader Taipei market which closed down 3.8%, losing 774 points - the most it has lost in a single day.
Sentiment was also hit by a rise in tensions between Israel and Iran.
TSMC has other challenges, too.
Speaking on Friday after being given an honour for his services to Taiwan, TSMC's retired and much revered founder Morris Chang said the company's current leadership needed "great wisdom" to navigate challenges to "dying" globalisation given how the firm had benefited so much from free trade.
"TSMC also faces resources challenges: land, water, power, talent, which need continued support from the government and all others," he said at the presidential office in Taipei, referring to limitations Taiwan's tech industry has long worried about.
Reporting by Ben Blanchard and Yimou Lee; Additional reporting by Faith Hung, Roger Tung and Jeanny Kao; Editing by Shri Navaratnam and Edwina Gibbs
https://www.reuters.com/technology/tsmc ... 024-04-19/
Re: CHIPS
REUTERS
"Micron set to get $6.1 bln in chip grants from US"
By Reuters
April 18, 2024
April 18 (Reuters) - Memory chip maker Micron Technology is set to receive $6.1 billion in grants from the U.S. Commerce Department to help pay for domestic chip factory projects, Democratic U.S. Senate Majority Leader Chuck Schumer said on Thursday.
The award, which is not yet finalized, will fund chipmaking facilities in New York and Idaho from the CHIPS & Science law, the New York senator said in a statement.
“This monumental and historic federal investment will power and propel Micron to bring its transformative $100+ billion four-fab project in central New York to life, creating an estimated 50,000 jobs,” he said.
Micron plans to build a complex of chip plants in New York over the next 20 years, the senator added.
The news caps off a string of Chips Act grants announced by the Biden administration in recent weeks as the United States seeks to reduce reliance on China and Taiwan and supercharge its own lagging chip production.
The U.S. share of global semiconductor manufacturing capacity has fallen from 37% in 1990 to 12% in 2020, according to the Semiconductor Industry Association (SIA).
Lawmakers have warned that U.S. dependence on chips manufactured in Taiwan by the world's top contract chip manufacturer, is risky because China claims the self-governed island as its territory and has reserved the right to use force to retake it.
Intel won $8.5 billion in grants last month while Taiwan's TSMC clinched $6.6 billion in April to build out its American production.
Samsung followed this week with a $6.4 billion award to boost production in Texas.
The historic Chips Act allocates $52.6 billion to support the sector.
The Commerce Department is dedicating $28 billion for government subsidies for advanced chips manufacturing - although it has more than $70 billion in requests - and also has $75 billion in lending authority.
New York Governor Kathy Hochul said in a statement that the largest private investment in American history is on its way to Central New York.
Reporting by Kanjyik Ghosh, additional reporting by Angela Christy; Editing by Shailesh Kuber and Subhranshu Sahu and Chizu Nomiyama
https://www.reuters.com/technology/micr ... 024-04-17/
"Micron set to get $6.1 bln in chip grants from US"
By Reuters
April 18, 2024
April 18 (Reuters) - Memory chip maker Micron Technology is set to receive $6.1 billion in grants from the U.S. Commerce Department to help pay for domestic chip factory projects, Democratic U.S. Senate Majority Leader Chuck Schumer said on Thursday.
The award, which is not yet finalized, will fund chipmaking facilities in New York and Idaho from the CHIPS & Science law, the New York senator said in a statement.
“This monumental and historic federal investment will power and propel Micron to bring its transformative $100+ billion four-fab project in central New York to life, creating an estimated 50,000 jobs,” he said.
Micron plans to build a complex of chip plants in New York over the next 20 years, the senator added.
The news caps off a string of Chips Act grants announced by the Biden administration in recent weeks as the United States seeks to reduce reliance on China and Taiwan and supercharge its own lagging chip production.
The U.S. share of global semiconductor manufacturing capacity has fallen from 37% in 1990 to 12% in 2020, according to the Semiconductor Industry Association (SIA).
Lawmakers have warned that U.S. dependence on chips manufactured in Taiwan by the world's top contract chip manufacturer, is risky because China claims the self-governed island as its territory and has reserved the right to use force to retake it.
Intel won $8.5 billion in grants last month while Taiwan's TSMC clinched $6.6 billion in April to build out its American production.
Samsung followed this week with a $6.4 billion award to boost production in Texas.
The historic Chips Act allocates $52.6 billion to support the sector.
The Commerce Department is dedicating $28 billion for government subsidies for advanced chips manufacturing - although it has more than $70 billion in requests - and also has $75 billion in lending authority.
New York Governor Kathy Hochul said in a statement that the largest private investment in American history is on its way to Central New York.
Reporting by Kanjyik Ghosh, additional reporting by Angela Christy; Editing by Shailesh Kuber and Subhranshu Sahu and Chizu Nomiyama
https://www.reuters.com/technology/micr ... 024-04-17/
Re: CHIPS
REUTERS
"US commerce secretary downplays chip in advanced Huawei phone"
By Reuters
April 22, 2024
WASHINGTON, April 21 (Reuters) - The chip powering the Mate 60 Pro phone of sanctioned Chinese company Huawei is not as advanced as American chips, U.S. Commerce Secretary Gina Raimondo said on Sunday, arguing that it shows U.S. curbs on shipments to the telecoms equipment giant are working.
Huawei, which has been on a trade restriction list since 2019, surprised the industry and the U.S. government when it released a new phone powered by a sophisticated chip last August.
The Huawei Mate 60 Pro was seen as a symbol of China's technological resurgence despite Washington's ongoing efforts to cripple its capacity to produce advanced semiconductors.
It was also seen by many as a slight for Raimondo, who was visiting China when it was released.
But in an interview with CBS News' "60 Minutes," Raimondo pushed back against that view.
"What it tells me is the export controls are working because that chip is not nearly as good, ... it's years behind what we have in the United States," she said.
"We have the most sophisticated semiconductors in the world."
"China doesn't."
Washington has been locked in a years-long effort to deprive Beijing of advanced semiconductor chips and the tools needed to make them over concerns they would be used to strengthen China's military capabilities.
Huawei, a symbol of that tech war, was added to the so-called entity-list in 2019 amid fears it could spy on Americans, forcing its U.S. suppliers to seek a difficult-to-obtain license to ship to it.
But its suppliers, including Intel, have received licenses worth billions of dollars to keep selling to the company.
Huawei's revelation of its first AI-enabled laptop powered by an Intel chip this month has fueled anger among Republican China hardliners.
When asked if she was tough enough on big business, Raimondo was emphatic.
"I hold businesses accountable as much as anyone," she told Lesley Stahl on "60 Minutes."
"When I tell them they can’t sell their semiconductors to China, they don’t love that, but I do that," she added.
The Huawei phone also prompted a review by the Biden administration to learn the details behind the chip that powers it, the most advanced semiconductor China has so far produced.
But details of the review have been scant.
Reporting by Alexandra Alper; Editing by Leslie Adler
https://www.reuters.com/technology/us-c ... 024-04-21/
"US commerce secretary downplays chip in advanced Huawei phone"
By Reuters
April 22, 2024
WASHINGTON, April 21 (Reuters) - The chip powering the Mate 60 Pro phone of sanctioned Chinese company Huawei is not as advanced as American chips, U.S. Commerce Secretary Gina Raimondo said on Sunday, arguing that it shows U.S. curbs on shipments to the telecoms equipment giant are working.
Huawei, which has been on a trade restriction list since 2019, surprised the industry and the U.S. government when it released a new phone powered by a sophisticated chip last August.
The Huawei Mate 60 Pro was seen as a symbol of China's technological resurgence despite Washington's ongoing efforts to cripple its capacity to produce advanced semiconductors.
It was also seen by many as a slight for Raimondo, who was visiting China when it was released.
But in an interview with CBS News' "60 Minutes," Raimondo pushed back against that view.
"What it tells me is the export controls are working because that chip is not nearly as good, ... it's years behind what we have in the United States," she said.
"We have the most sophisticated semiconductors in the world."
"China doesn't."
Washington has been locked in a years-long effort to deprive Beijing of advanced semiconductor chips and the tools needed to make them over concerns they would be used to strengthen China's military capabilities.
Huawei, a symbol of that tech war, was added to the so-called entity-list in 2019 amid fears it could spy on Americans, forcing its U.S. suppliers to seek a difficult-to-obtain license to ship to it.
But its suppliers, including Intel, have received licenses worth billions of dollars to keep selling to the company.
Huawei's revelation of its first AI-enabled laptop powered by an Intel chip this month has fueled anger among Republican China hardliners.
When asked if she was tough enough on big business, Raimondo was emphatic.
"I hold businesses accountable as much as anyone," she told Lesley Stahl on "60 Minutes."
"When I tell them they can’t sell their semiconductors to China, they don’t love that, but I do that," she added.
The Huawei phone also prompted a review by the Biden administration to learn the details behind the chip that powers it, the most advanced semiconductor China has so far produced.
But details of the review have been scant.
Reporting by Alexandra Alper; Editing by Leslie Adler
https://www.reuters.com/technology/us-c ... 024-04-21/
Re: CHIPS
REUTERS
"Intel forecasts second-quarter revenue below estimates, shares fall"
By Arsheeya Bajwa and Max A. Cherney
April 25, 2024
April 25 (Reuters) - Intel forecast second-quarter revenue and profit below market estimates on Thursday, as it faces weak demand for its traditional data center and personal computer chips amid efforts to build its contract manufacturing business.
Shares of the Santa Clara, California-based company fell close to 6% in extended trading.
The company expects second-quarter revenue in the range of $12.5 billion to $13.5 billion, compared with analysts' average estimate of $13.57 billion, according to LSEG data.
Intel forecast second-quarter adjusted earnings of 10 cents per share, also below expectations.
Enterprises have prioritized spending on advanced and speedy AI server chips, hurting demand for Intel's central processing units (CPUs), which have been the mainstay chip powering data centers for decades.
According to analysts, surging demand for graphics processing units (GPUs) useful for AI applications has also reduced the appetite for CPUs, which are Intel's main product.
Intel's total revenue of $12.72 billion in the first quarter marginally missed expectations of $12.78 billion.
Sales at its data center business rose 5% to $3 billion during the period.
Nvidia's powerful GPUs dominate the AI market, as large and small companies have sought to acquire tens of billions of dollars worth of its processors.
Still, constrained supply for these advanced and speedy processors has left Intel with the opportunity to capitalize on the towering demand, though it is a late entrant in the market.
Intel forecasts more than $500 million in revenue from its Gaudi AI chips this year, CEO Patrick Gelsinger told Reuters on Thursday.
Preliminary results from IDC showed the PC market returned to growth in the first quarter after about two years of declines.
Revenue from the client computing segment, which houses Intel's PC chips, rose 31% during the quarter.
Intel's contract manufacturing business, or foundry, is working to catch industry leader TSMC, but its profitability is years away.
Revenue from the foundry business fell 10% in the first quarter.
The company recorded an adjusted gross margin of 45.1% for the first quarter, compared with analysts' expectation of 44.3%.
Inter-segment eliminations of $4.4 billion were made to prevent double-counting of revenue.
Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi Majumdar
https://www.reuters.com/technology/inte ... 024-04-25/
"Intel forecasts second-quarter revenue below estimates, shares fall"
By Arsheeya Bajwa and Max A. Cherney
April 25, 2024
April 25 (Reuters) - Intel forecast second-quarter revenue and profit below market estimates on Thursday, as it faces weak demand for its traditional data center and personal computer chips amid efforts to build its contract manufacturing business.
Shares of the Santa Clara, California-based company fell close to 6% in extended trading.
The company expects second-quarter revenue in the range of $12.5 billion to $13.5 billion, compared with analysts' average estimate of $13.57 billion, according to LSEG data.
Intel forecast second-quarter adjusted earnings of 10 cents per share, also below expectations.
Enterprises have prioritized spending on advanced and speedy AI server chips, hurting demand for Intel's central processing units (CPUs), which have been the mainstay chip powering data centers for decades.
According to analysts, surging demand for graphics processing units (GPUs) useful for AI applications has also reduced the appetite for CPUs, which are Intel's main product.
Intel's total revenue of $12.72 billion in the first quarter marginally missed expectations of $12.78 billion.
Sales at its data center business rose 5% to $3 billion during the period.
Nvidia's powerful GPUs dominate the AI market, as large and small companies have sought to acquire tens of billions of dollars worth of its processors.
Still, constrained supply for these advanced and speedy processors has left Intel with the opportunity to capitalize on the towering demand, though it is a late entrant in the market.
Intel forecasts more than $500 million in revenue from its Gaudi AI chips this year, CEO Patrick Gelsinger told Reuters on Thursday.
Preliminary results from IDC showed the PC market returned to growth in the first quarter after about two years of declines.
Revenue from the client computing segment, which houses Intel's PC chips, rose 31% during the quarter.
Intel's contract manufacturing business, or foundry, is working to catch industry leader TSMC, but its profitability is years away.
Revenue from the foundry business fell 10% in the first quarter.
The company recorded an adjusted gross margin of 45.1% for the first quarter, compared with analysts' expectation of 44.3%.
Inter-segment eliminations of $4.4 billion were made to prevent double-counting of revenue.
Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi Majumdar
https://www.reuters.com/technology/inte ... 024-04-25/
Re: CHIPS
REUTERS
"Biden announces preliminary deal with Micron for up to $6.14 bln in chip grants"
By Jarrett Renshaw and Nandita Bose
April 25, 2024
WASHINGTON, April 25 (Reuters) - U.S. President Joe Biden traveled to Syracuse, New York, on Thursday and announced a preliminary agreement with memory chip maker Micron Technology for up to $6.14 billion in subsidies for two chip factories.
The agreement signed by the U.S. Commerce Department will fund facilities in New York and Idaho under the 2022 CHIPS and Science Act, which aims to boost domestic manufacturing of chips and reduce reliance on supplies from China and Taiwan.
Biden said the United States used to have 40% of the chips market but over time production moved outside the country and the pandemic exposed weaknesses in the U.S. supply chain that hurt critical industries.
"I'm determined that I'm never going to let us be vulnerable to wait lines again, what is essential is we're going to make it here in America together," Biden said.
The Commerce Department said the federal grants would support the construction of a fabrication plant, or fab, in Clay, New York, a first step toward Micron's plans to invest about $100 billion in New York and create 13,500 jobs.
The grants also provide initial funding for a facility in Boise, Idaho, unlocking a planned $25 billion investment in a fab to be co-located with Micron's research and development facilities there and should create 6,500 jobs, Commerce said.
Micron's investment will be the "largest private investment in New York and Idaho's history," and will create over 70,000 jobs, including 20,000 direct construction and manufacturing jobs and tens of thousands of indirect jobs," the White House said.
Biden, who is running for re-election in November's presidential election, used his visit to Syracuse to tout his administration's efforts to revitalize U.S. manufacturing and strengthen national security.
"American manufacturing is back, new factories are going up all across the country, and communities like Syracuse are writing the great American comeback story," Biden said.
In the evening, the president will speak at a campaign event in Westchester County, New York.
Biden signed the $52.7 billion CHIPS bill in August 2022 to subsidize U.S. semiconductor production and research.
Semiconductors were invented in the United States, but domestic companies produce only about 10% of the world's chips and none of the most advanced ones.
The White House said Thursday's announcement also included at least $40 million in funds for training and workforce development, as well as creation of four more workforce hubs in upstate New York, Milwaukee, Philadelphia and Michigan.
Under the agreement, Micron committed to providing affordable high-quality childcare for its workers across its facilities.
The company also affirmed "workers' rights to organize, to share feedback without fear of reprisal, and to collectively bargain," the White House said.
Reporting by Jarrret Renshaw, Nandita Bose and Andrea Shalal; Editing by Tom Hogue and Diane Craft
https://www.reuters.com/technology/bide ... 024-04-25/
"Biden announces preliminary deal with Micron for up to $6.14 bln in chip grants"
By Jarrett Renshaw and Nandita Bose
April 25, 2024
WASHINGTON, April 25 (Reuters) - U.S. President Joe Biden traveled to Syracuse, New York, on Thursday and announced a preliminary agreement with memory chip maker Micron Technology for up to $6.14 billion in subsidies for two chip factories.
The agreement signed by the U.S. Commerce Department will fund facilities in New York and Idaho under the 2022 CHIPS and Science Act, which aims to boost domestic manufacturing of chips and reduce reliance on supplies from China and Taiwan.
Biden said the United States used to have 40% of the chips market but over time production moved outside the country and the pandemic exposed weaknesses in the U.S. supply chain that hurt critical industries.
"I'm determined that I'm never going to let us be vulnerable to wait lines again, what is essential is we're going to make it here in America together," Biden said.
The Commerce Department said the federal grants would support the construction of a fabrication plant, or fab, in Clay, New York, a first step toward Micron's plans to invest about $100 billion in New York and create 13,500 jobs.
The grants also provide initial funding for a facility in Boise, Idaho, unlocking a planned $25 billion investment in a fab to be co-located with Micron's research and development facilities there and should create 6,500 jobs, Commerce said.
Micron's investment will be the "largest private investment in New York and Idaho's history," and will create over 70,000 jobs, including 20,000 direct construction and manufacturing jobs and tens of thousands of indirect jobs," the White House said.
Biden, who is running for re-election in November's presidential election, used his visit to Syracuse to tout his administration's efforts to revitalize U.S. manufacturing and strengthen national security.
"American manufacturing is back, new factories are going up all across the country, and communities like Syracuse are writing the great American comeback story," Biden said.
In the evening, the president will speak at a campaign event in Westchester County, New York.
Biden signed the $52.7 billion CHIPS bill in August 2022 to subsidize U.S. semiconductor production and research.
Semiconductors were invented in the United States, but domestic companies produce only about 10% of the world's chips and none of the most advanced ones.
The White House said Thursday's announcement also included at least $40 million in funds for training and workforce development, as well as creation of four more workforce hubs in upstate New York, Milwaukee, Philadelphia and Michigan.
Under the agreement, Micron committed to providing affordable high-quality childcare for its workers across its facilities.
The company also affirmed "workers' rights to organize, to share feedback without fear of reprisal, and to collectively bargain," the White House said.
Reporting by Jarrret Renshaw, Nandita Bose and Andrea Shalal; Editing by Tom Hogue and Diane Craft
https://www.reuters.com/technology/bide ... 024-04-25/
Re: CHIPS
"Biden in Syracuse to celebrate Micron's $6.1 billion CHIPS grant - President's visit comes after two law enforcement officers were slain in a shootout in Salina, eight miles from Micron's campus"
By Larry Rulison, Albany, New York Times Union
April 25, 2024
ALBANY – President Joe Biden landed in Syracuse on Thursday to celebrate a $6.1 billion grant awarded to Micron Technology, the memory chipmaker that is building a $100 billion manufacturing campus in the town of Clay, just north of the city.
Biden was joined by Gov. Kathy Hochul and U.S. Senate Majority Leader Charles Schumer of New York at the Milton J. Rubenstein Museum of Science & Technology in Syracuse's Armory Square.
In addition to touting the Micron award, being awarded through the $52 billion CHIPS and Science Act, the president was planning to meet with the families of the two police officers killed in a shootout on April 14 in the town of Salina, about six miles north of where Biden was speaking.
Funerals for the two men, Lt. Michael Hoosock of the Onondaga County Sheriff's Department, and Syracuse police Officer Michael Jensen, were held last week.
Both departments and their members were still reeling from the tragedy.
As a result, State Troopers were tasked with providing security for the president's visit instead of local law enforcement, which criticized the White House for not rescheduling the trip.
The $6.1 billion grant Micron will receive is coming from the $52 billion CHIPS and Science Act, the chip industry subsidy program that was authored by Schumer and designed to revitalize the domestic chip sector in the face of China seeking to dominate the industry and its supply chain.
Micron's award, which also includes $7 billion in federal loans, is the third CHIPS grant to be announced for large manufacturers.
The Micron event in Syracuse comes a month after Schumer and Hochul celebrated a $1.5 billion CHIPS grant that was awarded to GlobalFoundries to assist the company's construction of a second factory at the site, which supplies chips to the military, automakers and telecommunications companies among other industries.
The grant would also go toward an expansion at GlobalFoundries' chip factory in Essex Junction, Vt. outside Burlington.
The $6.1 billion grant for Micron will be in addition to $7.5 billion in loans that the company can access.
The funding is not only for the Syracuse-area project but also a new fab, or factory, that Micron is planning in its home state of Idaho.
https://www.timesunion.com/business/art ... 0headlines
By Larry Rulison, Albany, New York Times Union
April 25, 2024
ALBANY – President Joe Biden landed in Syracuse on Thursday to celebrate a $6.1 billion grant awarded to Micron Technology, the memory chipmaker that is building a $100 billion manufacturing campus in the town of Clay, just north of the city.
Biden was joined by Gov. Kathy Hochul and U.S. Senate Majority Leader Charles Schumer of New York at the Milton J. Rubenstein Museum of Science & Technology in Syracuse's Armory Square.
In addition to touting the Micron award, being awarded through the $52 billion CHIPS and Science Act, the president was planning to meet with the families of the two police officers killed in a shootout on April 14 in the town of Salina, about six miles north of where Biden was speaking.
Funerals for the two men, Lt. Michael Hoosock of the Onondaga County Sheriff's Department, and Syracuse police Officer Michael Jensen, were held last week.
Both departments and their members were still reeling from the tragedy.
As a result, State Troopers were tasked with providing security for the president's visit instead of local law enforcement, which criticized the White House for not rescheduling the trip.
The $6.1 billion grant Micron will receive is coming from the $52 billion CHIPS and Science Act, the chip industry subsidy program that was authored by Schumer and designed to revitalize the domestic chip sector in the face of China seeking to dominate the industry and its supply chain.
Micron's award, which also includes $7 billion in federal loans, is the third CHIPS grant to be announced for large manufacturers.
The Micron event in Syracuse comes a month after Schumer and Hochul celebrated a $1.5 billion CHIPS grant that was awarded to GlobalFoundries to assist the company's construction of a second factory at the site, which supplies chips to the military, automakers and telecommunications companies among other industries.
The grant would also go toward an expansion at GlobalFoundries' chip factory in Essex Junction, Vt. outside Burlington.
The $6.1 billion grant for Micron will be in addition to $7.5 billion in loans that the company can access.
The funding is not only for the Syracuse-area project but also a new fab, or factory, that Micron is planning in its home state of Idaho.
https://www.timesunion.com/business/art ... 0headlines
Re: CHIPS
REUTERS
"Chipmaker Intel falls as AI competition hurts forecast"
By Reuters
April 26, 2024
April 26 (Reuters) - Intel shares slumped more than 12% on Friday after a downbeat forecast signaled that the boom in AI was diverting enterprise spending away from its traditional data center chips.
The stock has fallen around 30% so far this year as Intel trails rival chip companies such as Nvidia in producing advanced artificial intelligence (AI) chips and components.
Intel forecast second-quarter revenue of $12.5 billion to $13.5 billion, compared with analysts' average estimate of $13.57 billion, according to LSEG data.
"While we believe they are doing everything they can to try to repair things, it is clear the company is profoundly broken, and it will take years to see the fruits of their (currently exhaustive) labor," Bernstein analysts said in a note.
Intel is planning a $100 billion spending spree across four U.S. states to build and expand factories.
It also unveiled a new AI chip earlier this year to keep up with competition.
Friday's drop was set to erase nearly $19 billion from the company's market value, which stood at $149.4 billion as of Thursday's close.
Businesses have prioritized spending on advanced and speedy AI server chips, hurting demand for Intel's central processing units, which had long been the mainstay chip powering data centers.
Although encouraged by the launch of Intel's Gaudi 3 AI chip, "we worry the company will continue to cede wallet share within the overall data center compute market to the likes of Nvidia and Arm", Goldman Sachs analysts said.
Still, Intel is optimistic that a fresh upgrade cycle for personal computers around a new version of Microsoft's Windows operating system will help PC sales in the second half of the year.
That could translate to more demand for its chips used in those devices.
The company's earnings contrasted strong results from Microsoft and Alphabet, which are Nvidia clients and also design in-house chips for their data centers.
Reporting by Zaheer Kachwala in Bengaluru; Editing by Devika Syamnath
https://www.reuters.com/technology/inte ... 024-04-26/
"Chipmaker Intel falls as AI competition hurts forecast"
By Reuters
April 26, 2024
April 26 (Reuters) - Intel shares slumped more than 12% on Friday after a downbeat forecast signaled that the boom in AI was diverting enterprise spending away from its traditional data center chips.
The stock has fallen around 30% so far this year as Intel trails rival chip companies such as Nvidia in producing advanced artificial intelligence (AI) chips and components.
Intel forecast second-quarter revenue of $12.5 billion to $13.5 billion, compared with analysts' average estimate of $13.57 billion, according to LSEG data.
"While we believe they are doing everything they can to try to repair things, it is clear the company is profoundly broken, and it will take years to see the fruits of their (currently exhaustive) labor," Bernstein analysts said in a note.
Intel is planning a $100 billion spending spree across four U.S. states to build and expand factories.
It also unveiled a new AI chip earlier this year to keep up with competition.
Friday's drop was set to erase nearly $19 billion from the company's market value, which stood at $149.4 billion as of Thursday's close.
Businesses have prioritized spending on advanced and speedy AI server chips, hurting demand for Intel's central processing units, which had long been the mainstay chip powering data centers.
Although encouraged by the launch of Intel's Gaudi 3 AI chip, "we worry the company will continue to cede wallet share within the overall data center compute market to the likes of Nvidia and Arm", Goldman Sachs analysts said.
Still, Intel is optimistic that a fresh upgrade cycle for personal computers around a new version of Microsoft's Windows operating system will help PC sales in the second half of the year.
That could translate to more demand for its chips used in those devices.
The company's earnings contrasted strong results from Microsoft and Alphabet, which are Nvidia clients and also design in-house chips for their data centers.
Reporting by Zaheer Kachwala in Bengaluru; Editing by Devika Syamnath
https://www.reuters.com/technology/inte ... 024-04-26/