Fifty years later, Intel is among those pushing for Congressional action and funding to help America regain a bigger share of chip making.
Patrick Gelsinger, CEO of Intel, told Jim Cramer on a recent episode of "Mad Money" about the importance of the Chips Act, currently hoping for a vote in the House after passing the Senate. The bill has become entangled in a broader bill dealing with Chinese security and competitiveness measures.
The country’s lack of manufacturing ability has made it more difficult to help fix the current worldwide chip shortage. The U.S. was the world’s leading chip maker for more than 20 years but now most are made in Asia, as manufacturing has moved to where costs are lower. But that hurt when the supply chain crumbled after the pandemic-forced lockdowns.
Under the Chips Act plan, the government would provide $1 for every $2 that companies invest into new chip foundries in the U.S.
Real Money's Bruce Kamich recently reviewed Intel's charts and found that investors are still skeptical about the company.
Gelsinger said he can't wait for the bill to get passed so he can get to work. He said it's vital that the U.S. recapture semiconductor manufacturing, and once new foundries are built, the rest of the supply chain, including packaging and testing, will soon follow. The pioneering maker of processing chips has been struggling recently against rivals Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report and Nvidia (NVDA) - Get NVIDIA Corporation Report.
Intel is betting big on its latest generation of processors, and has a five-year plan to capitalize on them. Gelsinger said the company's building two new foundries to manufacture the chips and has a clear vision for where Intel will be going.