As chips become more advanced and their circuitry shrinks to just thousandths of the width of a human hair, manufacturing them has become more expensive. A large, advanced chip plant today can cost more than a state-of-the-art aircraft carrier or a nuclear-power plant, according to a Boston Consulting Group analysis.
Intel is counting on government help to defray some costs. Political leaders in both the U.S. and Europe have signaled eagerness to build up chip-making locally and counter the industry’s shift > toward Asia, where manufacturing has typically been cheaper.
In the U.S., whose share of the chip market has fallen to about 12%, according to Boston Consulting Group, President Biden this month signed legislation allocating more than $50 billion for domestic chip manufacturing and research. Intel and other chip manufacturers lobbied heavily for the bill. The European Union is considering incentives to double its share of global chip-making to 20% by 2030.
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Intel stock, which we pointed out yesterday now yields over 4%, has been hammered lower as investor optimism for the company's expansion plans has been muted.
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Here's another article on this:
Intel Inks $30 Billion Financing Partnership With Brookfield To Fund Manufacturing Expansion
https://www.zerohedge.com/markets/intel-inks-30-billion-financing-partnership-brookfield-fund-its-aggressive-expansion