Analysis The multibillion-dollar gamble of Intel and other semiconductor industry players on US-based chipmaking is shaking a lot more than just tech

US may exempt chip giants' billion-dollar fabs from some rules, but the laws of physics still apply

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2024-09-25 16:00:04

Analysis The multibillion-dollar gamble of Intel and other semiconductor industry players on US-based chipmaking is shaking a lot more than just technological trees – it seems set to give America's power infrastructure a bit of a headache.

Intel and rivals including TSMC are fast-tracking plans for advanced fabs on US soil, all thanks to the 2022 Chips and Science Act, with semiconductor and electronics companies announcing "over $400 billion" investments in domestic semiconductor production and R&D. And US politicians are doing all they can to help.

A bill currently underway [PDF], allowing a federal permitting exemption for chip makers so they can sidestep environmental reviews and lawsuits that delay factory construction, is reportedly headed to President Joe Biden's desk for approval.

It's great for American manufacturing, but potentially sidestepping those rules won't matter if the chip giants can't solve an often-overlooked problem: power – not just any power, but the very specific kind chipmakers need to avoid a catastrophic meltdown: direct current (DC).