Raimondo Rallies Nvidia and Apple to Tap Intel's Chip Potential

In recent developments, U.S. Commerce Secretary Gina Raimondo has advocated for tech giants Nvidia and Apple to consider Intel's chip manufacturing services. This move comes after a private investor meeting aimed at reinforcing America's semiconductor manufacturing capabilities.

Before the closed-door meeting, Raimondo met with Intel CEO Pat Gelsinger, who expressed concerns about U.S. reliance on Taiwan's TSMC for chip production. The discussion underscored the importance of leveraging local production resources, with Intel poised as a key alternative.

The meeting included key shareholders from Nvidia and Apple, highlighting the strategic importance of bolstering domestic chip manufacturing. The initiative subtly positioned Intel as a potential leader in this space, encouraging companies to utilize its expanded facilities in four U.S. states.

Intel's efforts are supported by substantial government funding. Earlier this year, the company secured up to $8.5 billion under the CHIPS Act and may receive an additional $11 billion in loans as determined by 2022 legislation. These funds aim to accelerate Intel’s transition toward becoming a specialized chip manufacturer for third-party companies.

While allocations of these funds are pending, a senior government official has indicated that distributions are expected by the year’s end. This financial backing is part of a broader strategy to enhance U.S. competitiveness in the global semiconductor market.