• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

3

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

3

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Techsemiconductor industry

Chipmakers may finally get their $52 billion in CHIPS Act government subsidies—but companies like Intel are not happy about some of the strings attached

Nicholas Gordon
By
Nicholas Gordon
Nicholas Gordon
Asia Editor
Down Arrow Button Icon
Nicholas Gordon
By
Nicholas Gordon
Nicholas Gordon
Asia Editor
Down Arrow Button Icon
July 19, 2022, 5:02 AM ET
Updated July 20, 2022, 9:13 PM ET
Intel CEO Pat Gelsinger said that without CHIPS Act money, the chipmaker was likely to shift production to Europe.
Intel CEO Pat Gelsinger said that without CHIPS Act money, the chipmaker was likely to shift production to Europe.Jason Alden—Bloomberg/Getty Images
Add Fortune on Google for similar content.

If all goes as planned, Congress will finally start voting on funding the CHIPS Act on Tuesday.

On Monday, U.S. Senate Majority Leader Chuck Schumer (D–N.Y.) said the Senate would vote on $52 billion in government subsidies for domestic semiconductor or chip manufacturing as its own separate bill on Tuesday. The funding was originally part of a larger competition and innovation bill, which was held up in congressional negotiations.

“We need to move quickly,” Schumer said. “Without these incentives from Congress, the capital investment required for expanding production is not economically viable in the United States.”

After the Senate vote, the House of Representatives will still need to approve the CHIPS Act funding before submitting it to the White House for signing. Congressional leaders are operating on a tight schedule, hoping to get funding passed before Congress goes on recess on Aug. 8.

Passing CHIPS Act funding into law will be a victory for chipmakers like Intel Corporation, Taiwan Semiconductor Manufacturing Corporation, and GlobalWafers, which claim their planned U.S. projects depend on getting government money. Intel CEO Pat Gelsinger has been particularly vocal in pressuring Congress. The company delayed the groundbreaking ceremony on its $20 billion project in Ohio to protest the slow passage of the CHIPS Act. In late June, Gelsinger said that without CHIPS Act money, the chipmaker was likely to shift production to Europe, which offers its own government subsidies.

Despite chipmakers advocating for the bill’s passage, semiconductor manufacturers aren’t happy with everything that may end up in the final legislation.

The biggest point of contention relates to China—specifically, the restrictions on investing in China that will apply to companies that receive CHIPS Act money.

The CHIPS Act funding comes with so-called guardrails meant to ensure that U.S. subsidies are spent on building factories in the U.S. and not put toward some other purpose. One provision prevents recipients of CHIPS Act funding from expanding production of advanced chips in China, which would further escalate U.S. efforts to prevent China from producing the components that power nearly all of today’s digital devices, from phones and tablets to cars and servers.

Lawmakers worry that recipients of CHIPS Act funding could undermine U.S. security by expanding production in rival countries like China and thus want to impose conditions on chipmakers that get public money.

Chipmakers like Intel are lobbying to loosen those guardrails, reports Politico. One draft of the legislation barred funding recipients from producing semiconductors smaller than 28 nanometers in China. While chips of that size are still used in some consumer electronics, the most advanced chips used in smartphones and tablets are much smaller, meaning the proposal would prohibit chipmakers from churning out their most innovative technology on Chinese soil.

Instead of a blanket prohibition on chip production in China, Intel and other chipmakers want to give the Secretary of Commerce the authority to determine what size semiconductors are off-limits. One unnamed chipmaker told the Financial Times that chip manufacturing is developing so rapidly that the 28 nanometer threshold would be meaningless after a few generations of new chips.

An Intel spokesperson told Fortune that “Intel and many companies in our industry have come together with our trade association to provide input to policymakers in order to ensure that we have the best legislation possible and don’t inadvertently undermine the global competitiveness of companies that receive CHIPS funds.”

Guardrails were part of the CHIPS Act conversation as early as May 2021. Commerce Secretary Gina Raimondo said in December that the final legislation needed provisions “to protect ourselves from China” and that “long-term national security interests matter more than short-term profits.”

On Monday, White House press secretary Karine Jean-Pierre said that the Biden administration continues “to support strong guardrails” in the CHIPS Act. The proposed funding is meant to “generate more semiconductor investment here in the U.S., not in China, and guardrails help slow the growth of investment in China,” Jean-Pierre said.

The U.S. bans exports of high-end semiconductors and chip manufacturing equipment to China and is reportedly considering more export restrictions of chipmaking tools to Chinese companies. The Biden administration is also pressuring non-U.S. manufacturers, like ASML Holding, from exporting chip manufacturing equipment to China. Beijing has criticized the moves as “classic technological terrorism.”

U.S. efforts to constrain China’s chip industry have encouraged Beijing to invest in chip self-sufficiency. The government has poured money into domestic chip manufacturers like Semiconductor Manufacturing International Corporation and Tsinghua Unigroup. Chinese companies like Huawei Technologies, Alibaba Group Holding, and ByteDance are also investing in chip design.

Update, July 20, 2022: This article has been updated with a comment from Intel.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.
About the Author
Nicholas Gordon
By Nicholas GordonAsia Editor
LinkedIn iconTwitter icon

Nicholas Gordon is an Asia editor based in Hong Kong, where he helps to drive Fortune’s coverage of Asian business and economics news.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Tech

Hugging Face CEO Clément Delangue (center) on Capitol Hill on September 13, 2023 in Washington, D.C. (Photo: Chip Somodevilla/Getty Images)
NewslettersFortune Tech
OpenAI: Our models accidentally compromised Hugging Face
By Andrew NuscaJuly 22, 2026
35 minutes ago
Sam Altman and Jony Ive formed a dream team to reinvent hardware. Now it’s at the center of a battle for OpenAI’s future
Big TechOpenAI
Sam Altman and Jony Ive formed a dream team to reinvent hardware. Now it’s at the center of a battle for OpenAI’s future
By Emily Forlini and Sebastian HerreraJuly 22, 2026
2 hours ago
After SpaceX’s $2 trillion debut, investors are eyeing Anthropic and OpenAI. Market experts share how to play the next trillion-dollar IPO
MagazineIPOs
After SpaceX’s $2 trillion debut, investors are eyeing Anthropic and OpenAI. Market experts share how to play the next trillion-dollar IPO
By Amanda GerutJuly 22, 2026
2 hours ago
Panera founder and Cava chairman Ron Shaich bets $100 million on Level99, bringing his restaurant industry playbook to entertainment
C-SuiteFood and drink
Panera founder and Cava chairman Ron Shaich bets $100 million on Level99, bringing his restaurant industry playbook to entertainment
By Catherina GioinoJuly 22, 2026
2 hours ago
t
AIMarkets
Billionaire Mike Bloomberg warns Trump’s AI ownership plan would make ‘George Orwell blush’
By Eva RoytburgJuly 21, 2026
11 hours ago
U.N. reports Southeast Asia’s criminal networks are using tech to build a global illicit economy
AsiaTech
U.N. reports Southeast Asia’s criminal networks are using tech to build a global illicit economy
By The Associated PressJuly 21, 2026
12 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
2 days ago
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
Cybersecurity
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
By Jeremy Kahn and Emily ForliniJuly 21, 2026
13 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
2 days ago
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
AI
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
17 hours ago
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
Success
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
By Emma BurleighJuly 21, 2026
18 hours ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.