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AI Chip Manufacturing Subsidies Pose Tough Choices for U.S. Officials

Reports indicate that the U.S. government has allocated nearly $30 billion in subsidies for advanced semiconductor manufacturing, aiming to bring the development and production of cutting-edge artificial intelligence chips to the United States.

However, industry experts say that as funds are set to begin flowing in the coming weeks, the Biden administration must decide how to allocate the money between two companies: the powerhouse TSMC and the struggling domestic company, Intel, whose efforts to turn around its fortunes remain hopeful but untested.

It is noted that Intel, TSMC, and Samsung are all constructing facilities in the U.S. and are likely to receive some level of subsidies from the U.S. The main issue for U.S. officials is how to distribute funds to achieve the goal of producing artificial intelligence chips.

U.S. Commerce Secretary Gina Raimondo stated in a speech last month, "We don't manufacture or package any of the cutting-edge artificial intelligence chips that are necessary to power the innovation ecosystem and our defense systems," adding, "We cannot build the next generation of tech leadership on such an unstable foundation."