Intel ’s CEO Says They Don’t Need Subsidies; the Government Should Take Him at His Word

Scott LincicomeAs discussed hererepeatedly, semiconductors are at the center of the debate in Washington about whether the United States should (once again) embrace industrial policy. In particular, numerous elected officials and wonks support appropriating tens of billions of new taxpayer dollars, initially approved under the 2021 National Defense Authorization Act, to subsidize the construction of semiconductor manufacturing facilities ( “fabs”) on U.S. soil. Among the primary reasons for why such subsidies are urgently needed is the claim that American chipmakers have lost their edge and either can’t or won’t build new fabs here without the same kind of subsidies that the Chinese government has lavished upon its industry (lackluster results notwithstanding).Not everyone agrees, however, including not just libertarian skeptics like me but also … the new CEO of Intel, the United States’ largest chipmaker. In announcing the company’s new$20 billion plan to build two new fabs in Arizona, in fact, Intel ’s head honchoexpressly said this week that the company doesn ’t need taxpayer help (though of course, they won’t object to free money!):While specifics were not given out, Gelsinger said that Intel was expecting to receive incentives from the Biden administration for building out indigenous fab capacity here in the United States and also incentives from the state of Arizona for the $20 billion foundry buildout revealed today. Not that Intel needs it, ap...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs