Biden Administration’s Efforts to Encourage NVIDIA & AMD to Purchase Intel Chips to Revitalize Intel’s Business: Can Trump Succeed Where Biden Did Not?

Since the onset of the Biden administration, there has been a significant push to revitalize Intel’s semiconductor manufacturing sector. The administration has made efforts to engage major industry players such as AMD and NVIDIA, aiming to bolster domestic chip production.

Revitalizing Intel: The Role of Government Support

The conversation surrounding semiconductor manufacturing in the United States often raises a pivotal question: What is the necessity of promoting Intel when TSMC has demonstrated the capability to meet domestic chip production demands? One compelling answer lies in Intel’s longstanding legacy as a pioneer of high-end chip technology within the U. S.borders. Unfortunately, as Intel faces significant challenges, both current and previous U. S.administrations have intensified efforts to support the company’s chip business recovery.

Biden officials, for example, tried to get companies like Nvidia and Advanced Micro Devices Inc.to consider using Intel as a manufacturing partner, and also explored long-shot ideas like a tie-up between Intel and GlobalFoundries Inc.- Bloomberg

Contrary to popular belief, the Biden administration’s attempts to persuade major tech firms to procure chips from Intel echo similar initiatives proposed during the Trump era. However, significant barriers remain. Key companies are hesitant to invest in Intel, primarily due to the lack of adequate manufacturing capacity to meet their needs and the existing long-term contracts these firms have with TSMC.

Colorful semiconductor wafer with intricate patterns, reflecting red to green gradient light. — Intel’s chip wafer | Image Credits: Intel

At present, major tech companies seem reluctant to source their chip requirements from Intel. However, recent developments suggest potential shifts. SoftBank’s acquisition of a substantial stake in Intel might signal the beginning of a promising partnership with ARM, possibly leading to the integration of ARM’s 18A technology in future offerings. In fact, Intel recently unveiled a reference non-x86 System on Chip (SoC) that utilizes third-party intellectual property, hinting at a potential collaboration with ARM.

For the U. S.government, prioritizing Intel’s resurgence is crucial. Supporting Intel’s revival holds greater significance than merely aiding TSMC and other companies in establishing manufacturing facilities within the United States. While progress is being made, it is evident that substantial efforts are still required to ensure Intel’s competitiveness in the semiconductor market.

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