Semiconductor manufacturers are fighting to get access to the billions of dollars provided by the bipartisan infrastructure bill and the Biden administration in an effort to shift production out of China.
Dozens of chip companies came together in the summer of 2022 to lobby for the passage of the CHIPS Act, a bill designed to provide billions in funding to companies such as Intel and AMD to help them build new chip factories and expand production options after a shortage amid the pandemic. Now the companies are arguing with each other to get the funding for themselves, according to the New York Times.
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Intel questioned whether taxpayer money should go to the competitors that operated offshore facilities, according to public filings. The company said that doing so would funnel American innovation outside the United States. "Our I.P. is here, and that's not insignificant. We are the U.S. champion," Intel's Vice President of Government Relations Allen Thompson told the newspaper.
Another public relations firm sent an email to the outlet alleging that Intel would attempt to acquire the funding for new factories but would leave them empty. The firm did not name the client but has a history of representing AMD, a rival of Intel.
State and city leaders have made similar pushes, hoping to get access to funding for themselves.
Chipmakers spent more than $59 million on lobbying in 2022, according to OpenSecrets, a 23% increase in spending from the last year.
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The CHIPS Act was passed in July 2022, and the Commerce Department will distribute its funding to many companies and suppliers in the coming months. The funding will help companies such as Intel and TSMC to construct new chip fabricator plants in the U.S. The Commerce Department has also passed several export controls to limit Chinese access to U.S. chips, a motion that China is attempting to challenge in the World Trade Organization.
At the same time, China has cut back on its government funding for improved domestic chip production.