President Biden wants $37 billion in funding to gear up domestic...

President Biden wants $37 billion in funding to gear up domestic chip manufacturing. Intel’s CEO Pat Gelsinger says he hopes the U.S. could increase its semiconductor production to one-third of all chips sold in the U.S.

Currently, four new factories are slated to be built in the country, two by Intel Corp INTC and one by TSMC in Arizona, and another by Samsung in Texas. But as we’ve pointed out in previous columns, building fabs is an expensive (up to $20 billion per fab) and long-term (up to five years) process.

The Global Chip Shortage Is America’s Wakeup Call (forbes.com)



The chip shortage that's wreaking havoc on supplies of cars, computers, and more could last another 2 years, experts say


The global chip shortage that is jamming up auto manufacturers is rippling across nearly every industry that makes or uses tech-enabled products.

In particular, analysts say the boom in cloud computing and cryptocurrency mining, as well as the embedding of smart features in everything from doorbells to dishwashers, has led to a gold rush in the sector.

“We are looking at couple of years… before we get enough incremental capacity online to alleviate all aspects of the chip shortage,” IBM President Jim Whitehurst told the BBC. His company licenses microprocessor technology to the world’s leading chip makers.

Last week, Reinhard Ploss, CEO of German chipmaker Infineon, told CNBC his industry has never seen conditions like these, but that two years to normal seemed “too long.”

Other firms have painted even rosier forecasts – Taiwan Semiconductor Manufacturing Company (TSMC), the largest chip maker, said it expects to catch up with auto industry demand next month, and Cisco CEO Chuck Robbins, told the BBC the shortage would wind down later this year.

New production is coming online, with a $20 billion spend from Intel and a $28 billion investment from TSMC, but that does little to solve the immediate challenge facing the market right now.

https://www.*.com.au/global-chip-shortage-could-last-another-2-years-experts-say-2021-5?r=US&IR=T