"Intel is a special case. The storied U.S. chip maker has fallen on hard times after missing the chance to supply the chips of the mobile revolution. Now it's far behind in having the technology to design and/or manufacture best-in-class chips that are good at training and running AI models. The de facto alternative to a U.S. fabricator of AI chips, meanwhile, is TSMC."
"The U.S. is in a big hurry to find ways to de-risk that geopolitical situation. Washington has worked with TSMC to build advanced fabrication facilities on U.S. soil, and the company is now in the process of spending $65 billion on building three giant factories in Arizona. But the chip maker has found that setting up fabs in the U.S. is far slower than in Taiwan. That's thanks to a challenging regulatory and administrative environment, a thorny struggle to acquire permits, and big cost overruns."
Apple held talks with Intel about a possible strategic investment, sparking stock-movement and increased interest in Intel after the U.S. announced an $8.9 billion government share. Nvidia committed $5 billion and Softbank $2 billion to Intel. Intel has fallen behind after missing the mobile-chip era and lacks cutting-edge design and manufacturing for AI training and inference chips. Most advanced AI chips, mainly Nvidia designs, are manufactured overwhelmingly by TSMC in Taiwan. TSMC is investing $65 billion to build three Arizona fabs but faces slow permitting, regulatory hurdles, and cost overruns, keeping most advanced production in Taiwan and prompting U.S. efforts to develop a viable domestic second source.
Read at Fast Company
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