Raimondo Says US Likely To Need Second "CHIPS" Bill

US Commerce Secretary Gina Raimondo, speaking an a virtual event hosted by Intel today, says she believes the US will likely need additional legislation to encourage the domestic semiconductor sector and compete globally in emerging field such as Artificial Intelligence.

• Raimondo: “I suspect there will have to be — whether you call it Chips Two or something else — continued investment if we want to lead the world. We fell pretty far. We took our eye off the ball.”
• BBG notes: "[Raimondo] pointed to the computing demands of artificial intelligence, adding that she has met recently with OpenAI Chief Executive Officer Sam Altman and other customers of cutting-edge electronic components. “The volume of chips that they project they need is mind boggling,” she said."
• The Commerce Department began major awards from the 2022 CHIPS and Science Act this week with a USD$1.5 billion preliminary agreement with GlobalFoundries. However, the administration has been hit with setbacks which threaten to derail a semiconductor 'boom' which was to underpin Democrats 2024 election campaign message.
• Earlier this week, TSMC announced a delay in their USD$40 billion site in Arizona which is now expected to begin operations in 2025, after the general election in November.