The US is preparing to build the world’s largest chip base, but is there still no solution?

2022-06-14 0 By

Intel said on Monday it would invest an initial $20 billion to build two new chip manufacturing plants in Ohio, with plans to eventually spend $100 billion.To build the world’s largest chip manufacturing facility in Ohio.President Joe Biden praised Intel’s plan and urged Congress in a televised address to pass a bill that has stalled negotiations.The bill would raise as much as $52 billion specifically for domestic chip production.The funding bill, part of the American Innovation and Competition Act, was approved by the U.S. Senate last summer, but has been held up in the House of Representatives as lawmakers remain divided.Notably, the bill calls for $2 billion to be earmarked for the production of chips for major American automakers.As an important sector of the U.S. economy, the U.S. auto industry continues to suffer from chip shortage, and the passage of the bill will undoubtedly help the United States to solve the problem of car core shortage.”We face intense economic and technological competition, and we will do whatever it takes to invest in the United States,” said Patrick Kisinger, Intel’s chief executive.By 2030, he estimates, chips will account for 20 percent of the total cost of a new car.Currently, the figure is just 4%.Even if the demand for chips has not reached such a high level in 2030, at present, the global chip supply shortage that continues to spread and ferments has become the biggest “black swan” affecting the normal production and supply of the American automobile industry.As the US relies heavily on overseas manufacturing, such as chip manufacturing, the “lack of core” has disrupted the pace of the domestic auto industry and continued to drive up retail prices, Business Insider said.According to AutoForecast Solutions, a research consultancy, the global auto market has seen cumulative production losses due to chip shortages hit 10.2 million vehicles in 2021, with North America alone accounting for about a third of the losses, making it one of the biggest “disaster zones”.Not only that, according to the authoritative third-party agencies, consumer reports show in the iron core of idle capacity and production is slowing, and the high demand of consumer market, under the joint action of the U.S. auto sales terminal a record high of clinch a deal the price, and have a trickle-down effect on used-car market, seriously affected the north American auto consumption enthusiasm.The key is to increase the capacity of the U.S. to make chips at home, but the U.S. is still heavily and increasingly dependent on Imports from Asia for most of its chips.About 80 percent of the world’s chips are now made in Asia, compared with about 12 percent made in the United States, up from 37 percent in the 1990s, according to industry sources.And Intel in the United States to invest in the construction of chip manufacturing base, will undoubtedly help the United States to solve the development of the automotive industry.”Because we don’t have enough chips, we’re driving up auto prices right now and driving up inflation by about a third,” said Commerce Secretary Gina Raimondo.In the future, every electric car will need 2,000 chips, much more than today, which is why Intel’s announcement today is so exciting.”Even though Raimondo sees Intel as The “savior” to his auto chip shortage crisis, and even to U.S. inflation, Intel’s factories don’t make auto chips, at least not yet, according to The Verge, so The company’s capacity plans may have nothing to do with The current auto chip shortage.While Intel acquired autonomous driving chip company Mobileye in 2017, its chips are still manufactured by TSMC, the report said.The company’s new chip manufacturing facility in Ohio has not yet specified what kind of chips it will produce, with kisinger only saying in his presentation that the process will be 2nm and below.