The Biden administration announcing it'll scrap funding from the chips

that had been allocated to build and expand

semiconductor R&D facilities.

Our Christina Parts of Novellos breaks down the impact of that for today's

tech check.

Hey Christina. Hi, Carl. There's so much demand right now for the 53 billion dollar CHIPS Act

government aid that the Biden administration announced, like you said,

that it's going to scrap funding plans specifically for research and

development facilities.

That amount is undisclosed at the moment, but Reuters is reporting it's more than $2 billion and

it's $2 billion that's going to be allocated to fund chip manufacturing hubs, Intel for example which just received over

twenty billion dollars in aid and government loans to build chips on American soil

just a last month it is a lot 20 billion is a lot lot, but it's a drop in the bucket when you consider

Intel has promised to spend over $100 billion on manufacturing hubs like this Ohio one you're seeing

on your screen right now. I spoke with Intel CEO Pat Gelsinger

just a few weeks ago and he told me that it took three decades to lose chip

manufacturing to Asia and it's not just going to come back here in the United States

in three to five years and suggest that there should be another round of government aid calling it Chips Act 2.

We'll see if that catches on.

Speaking of those manufacturing hubs, Intel is looking to convince investors of better profitability in a webinar

this afternoon.

It plans to separate the economics of its internal fabs from its chip designs.

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