Nvidia announced **300,000 chips, followed by Intel.
At this stage, Biden hopes that the U.S. chip manufacturing industry can rise quickly and return to the dominance of the "U.S. chip manufacturing industry", and the "U.S. chip manufacturing industry" is the dominant position. In this context, some American companies have also shown a positive reaction to American chips**. Of course, most companies aren't as pragmatic as Nvidia.
As one of TSMC's major suppliers, Nvidia has generously ordered a large number of orders from Intel, a local chip manufacturer in the United States, to provide it with the production of up to 300,000 chips at a time.
Nvidia, on the other hand, can increase Intel's chip production and make more profits for the United States. In the final analysis, chip manufacturing in the United States still depends on American companies to do it themselves. However, at the same time as Nvidia's announcement, there was also a surprising news from Intel.
Intel has previously said that it will build a factory in the United States to adapt to market demand. Intel is expected to accelerate the construction of its chip factory in the United States after reaching an agreement with Nvidia. However, Intel said that they originally planned to start producing chips next year, but they encountered some difficulties due to the availability of funds, so they were willing to postpone the production of chips. To put it simply, Mr. Biden's team is simply hoping that the company building the chip factory will start production as soon as the funds are secured.
Both writers, for their part, seem to be urging Biden to make a decision as soon as possible.
First of all, Intel has received a large number of orders from Nvidia, and some of their supply channels are provided by Intel. Intel's purpose is also very clear, that is, to pay subsidies as soon as possible, and they don't want to start work without subsidies. But Nvidia can't let Intel continue to operate, if Intel's factory can't be put into production, then Nvidia will transfer its own ** chain to other ** companies such as Samsung.
Biden does not want to see this happen, because the opportunity to improve the core competitiveness of the US manufacturing industry is in front of him, and if it is missed, the US semiconductor industry will be greatly hit. In addition, this trend will also motivate other chip producers, who may not only stop relying on TSMC, but expand their scale.
Second, South Korean companies have hinted at setting up factories in the United States, as Nvidia has a growing market share. For example, SK hynix, which has the potential to invest $15 billion to build a chip factory in the United States. However, if Nvidia has sufficient demand, SK hynix will seriously consider this idea. In other words, as Nvidia's position in the market continues to improve, the attractiveness of U.S. semiconductor companies to foreign capital will also be affected.
If Nvidia finds it difficult to produce chips and Intel cannot replace them, the competitiveness of semiconductor chip manufacturing in the United States may be weaker. It all depends on when the chip production subsidy in the United States will be removed.
Now, despite their repeated emphasis on addressing subsidies for chipmakers like Intel in the coming weeks, this is just rhetoric and no real action, otherwise Intel would not have repeatedly stressed that its chip subsidies are being challenged. If the chip subsidy is not delivered, then it will be difficult for Biden's team to seize this opportunity.
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