

The chip industry's new course is part of what some call the decoupling, which at least to some degree is pulling the Chinese and US economies apart. A few days later, the European Union proposed 15 billion euros ($17.1 billion) in new funding through a Chips for Europe initiative.

The House of Representatives passed its version in February after the Senate's work on the bill in 2021. In the US, Congress is working on a bill that would provide chipmakers $52 billion. The idea of "technological sovereignty" is loosening government purse strings. "We don't want to create a situation where the United States, which created the semiconductor industry and Silicon Valley, would be completely dependent on other nations for that product," said Al Thompson, who leads Intel's US government relations. The new "megafab" site eventually could house eight Intel fabs costing $100 billion in total. One huge change: In January, Intel said it'll $20 billion on two chip fabrication plants, or fabs, near Columbus, Ohio. ( TSMC) and Samsung Foundry, hopes to take advantage of rising demand and government funding to reclaim its leadership position. Intel, which has slipped to third place behind Taiwan Semiconductor Manufacturing Co. The chip shortage is also shining a new spotlight on the state of US manufacturing and how much of it has moved out of the country. And chipmakers - salivating at government subsidies to underwrite research and new factories and forecasting a widespread increase in chip demand - are investing as never before. The US government isn't happy with how reliant the country's economy and military have become on Asian high-tech manufacturing. The shortage is leading the tech industry and politicians to try to reverse the United States' waning importance in the microprocessor business. A worldwide problem triggered by the COVID-19 pandemic has metastasized into a years-long disruption of everything electronic and is prompting governments to spend lavishly on chipmaking subsidies. When you can't buy that Sony PS5 or Ford F-150 pickup, blame the chip shortage.
