U.S. Commerce Secretary Gina Raimondo and Intel CEO Pat Gelsinger have voiced frustration over America’s heavy reliance on TSMC for advanced chip manufacturing. Washington is now pushing tech giants like NVIDIA and Apple to consider U.S.-based foundries—particularly Intel—for producing next-generation AI and advanced processors.
A Push to Strengthen Domestic Manufacturing #
The U.S. government has invested more in the semiconductor industry over the past two years than in the previous 28 years combined. This effort is part of a broader strategy to secure the domestic chip supply chain amid rising geopolitical tensions and supply risks in East Asia.
Intel, in particular, is positioning itself as a top-tier foundry competitor to TSMC and Samsung. Reports suggest Intel may restructure by spinning off its manufacturing arm and certain non-core businesses—similar to AMD’s 2008 move when it created GlobalFoundries.
Why This Matters for U.S. Tech Giants #
Today, most leading U.S. technology firms—including NVIDIA, AMD, Apple, Amazon, and Google—design their own chips but rely heavily on TSMC for manufacturing. This concentration creates risks for supply stability, especially as demand for AI accelerators and advanced processors surges worldwide.
NVIDIA’s Position on Foundry Flexibility #
NVIDIA CEO Jensen Huang acknowledged the potential for shifting GPU production if necessary:
“If necessary, we can change factories for our GPU manufacturing. If we had to move from one foundry to another, we might not get the same performance or cost levels—but we would still be able to supply GPUs.”
His remarks suggest NVIDIA is open to diversifying foundry partners, even if it comes at the expense of efficiency or pricing.
The Bigger Picture #
By pushing companies like NVIDIA and Apple to adopt Intel’s manufacturing, Washington aims to:
- Reduce reliance on overseas foundries (especially TSMC in Taiwan)
- Strengthen U.S. chip independence
- Secure advanced AI hardware supply chains
While the move could face challenges—such as cost competitiveness and yield differences compared to TSMC—it underscores the strategic importance of domestic semiconductor production in the U.S.
✅ Key Takeaway #
The U.S. government is making a strong push for NVIDIA and Apple to leverage Intel’s foundry services, reflecting a broader national strategy to rebuild domestic semiconductor capacity. If successful, this could reshape the balance of power in the global chip industry and mark a turning point for Intel’s manufacturing ambitions.