Ana Swanson

And as they lost that technological edge, they also started to outsource some of their own manufacturing to factories in Taiwan. So this is a complicated situation. The US government wants Intel to be its national chip champion. Intel wants to get back on top, but the company is still in rough shape and it's an open question whether this government money can help turn it around.

And as they lost that technological edge, they also started to outsource some of their own manufacturing to factories in Taiwan. So this is a complicated situation. The US government wants Intel to be its national chip champion. Intel wants to get back on top, but the company is still in rough shape and it's an open question whether this government money can help turn it around.

So we're at this moment where the government really wants Intel to be expanding its factories and hiring new people. But instead, the company's had to announce 15,000 layoffs and has said it needed to delay the opening of a big factory in Ohio. Wow.

So we're at this moment where the government really wants Intel to be expanding its factories and hiring new people. But instead, the company's had to announce 15,000 layoffs and has said it needed to delay the opening of a big factory in Ohio. Wow.

And we heard this very telling moment in our reporting where earlier this year at this gathering of tech executives and billionaires in Sun Valley, Idaho, Gina Raimondo, who's the Commerce Secretary, was meeting with chief executives from Microsoft and Google and other firms and encouraging them to order their chips from Intel's U.S. factories. And many of these companies have said no.

And we heard this very telling moment in our reporting where earlier this year at this gathering of tech executives and billionaires in Sun Valley, Idaho, Gina Raimondo, who's the Commerce Secretary, was meeting with chief executives from Microsoft and Google and other firms and encouraging them to order their chips from Intel's U.S. factories. And many of these companies have said no.

They're not convinced that Intel's technology is there yet.

They're not convinced that Intel's technology is there yet.

Yeah. So what should be a mutually beneficial partnership is proving to be quite tricky for the government. And the administration has tried to hedge its bets. It's been trying to give money to a lot of chip makers. And maybe surprisingly, the program's biggest success so far is actually this new plant in Arizona from a Taiwanese chip maker called TSMC.

Yeah. So what should be a mutually beneficial partnership is proving to be quite tricky for the government. And the administration has tried to hedge its bets. It's been trying to give money to a lot of chip makers. And maybe surprisingly, the program's biggest success so far is actually this new plant in Arizona from a Taiwanese chip maker called TSMC.

So I think they think it's a great thing that TSMC is here. This is the world's most advanced chip maker. And now the United States will have cutting edge chip manufacturing within its borders. It's still a little bit tricky because some of the U.S. governments say we still shouldn't trust a foreign headquartered company to make the most sophisticated military chips.

So I think they think it's a great thing that TSMC is here. This is the world's most advanced chip maker. And now the United States will have cutting edge chip manufacturing within its borders. It's still a little bit tricky because some of the U.S. governments say we still shouldn't trust a foreign headquartered company to make the most sophisticated military chips.

So, you know, that's why the U.S. government, after all of this, is still very interested in backing Intel as well.

So, you know, that's why the U.S. government, after all of this, is still very interested in backing Intel as well.

Yeah. So it's a very long term project. These chip plants are huge. They take many years to construct and to open. But stepping back, we already see that factory construction is up a lot under President Biden. You see these chip and electric vehicle battery factories and other factories sprouting up around the United States.

Yeah. So it's a very long term project. These chip plants are huge. They take many years to construct and to open. But stepping back, we already see that factory construction is up a lot under President Biden. You see these chip and electric vehicle battery factories and other factories sprouting up around the United States.

The Biden administration is also pointing to 115,000 jobs created in the chip industry. A lot of these are construction jobs, but other high paying manufacturing jobs should be on the way in the coming years.

The Biden administration is also pointing to 115,000 jobs created in the chip industry. A lot of these are construction jobs, but other high paying manufacturing jobs should be on the way in the coming years.

Yeah, it's got some momentum, but it's going to take a while before we really feel its effects. And you've seen Trump also come out and criticize it as wasteful, saying you don't need to give wealthy companies all this money. You just need to put a big tariff on them and then they'll move their manufacturing back to the United States. Hmm.

Yeah, it's got some momentum, but it's going to take a while before we really feel its effects. And you've seen Trump also come out and criticize it as wasteful, saying you don't need to give wealthy companies all this money. You just need to put a big tariff on them and then they'll move their manufacturing back to the United States. Hmm.