US will need 'CHIPS Act 2' investment into semiconductor manufacturing to be the best for AI

The 2022 CHIPS Act saw $39 billion in direct grants, plus loans and loan guarantees worth $75 billion to spark up domestic semiconductor production in the United States... and it needs way more money.

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US Commerce Secretary Gina Raimondo said that the US needs continued investment in semiconductor manufacturing in order to take global leadership and meet demand from AI technologies. Raimondo said: "I suspect there will have to be - whether you call it Chips Two or something else - continued investment if we want to lead the world. We fell pretty far. We took our eye off the ball. When I talk to him or other customers in the industry, the volume of chips that they project they need is mind boggling".

Intel has plans for a $20 billion plant in Ohio and a $20 billion expansion of its plant in Arizona and is also in discussions for a further $10 billion in grant and loan incentives. Intel recently announced its first customer for its new Intel 18A process node: Microsoft. Microsoft is building a new chip using Intel 18A in the future, while Intel teased its next-gen Intel 14A process node for 2026 when it plans to be the home of making the fastest chips in the world.

• Read more: Intel eyes 2026 as when it wants to beat TSMC at making the world's fastest chips
• Read more: Intel unveils Intel 14A process node, ready for the future of AI chip production
• Read more: Intel wants another $10 billion from the CHIPS Act and Biden administration

Intel CEO Pat Gelsinger said on Wednesday that an award announcement was coming "very soon," while Raimondo didn't have a comment on the timing of Intel's award when she spoke. She did call Intel "an American champion company" and that the company "has a very huge role to play in this revitalization".