Semiconductor Alliance Enlists Intel, Micron And Others In Global Chip War

Intel, Micron, Analog Devices and MITRE Engenuity will band together for semiconductor research to get ahead of the global supply chain chip shortage and reclaim U.S. dominance.

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In an effort to propel U.S. semiconductor research, Intel this week announced that it would join forces with Micron and Analog Devices as part of a new effort to push for more resources in the hypercompetitive global chip market challenged by supply chain issues.

The agreement with MITRE Engenuity’s Semiconductor Alliance would build up the semiconductor industry with research, development and prototyping efforts to match global competition in the chip arena – which is shaping up to be a veritable arms race, with countries throwing billions of dollars into their respective semiconductor industries. According to the Semiconductor Industry Association, China’s market share of semiconductor sales has skyrocketed. By 2020, China showed an unprecedented annual growth rate of 30.6 percent to $39.8 billion in annual sales – capturing 9 percent of the global market.

Kent Tibbils, vice president of marketing at authorized Intel distributor ASI, said the alliance makes sense considering the current state of the industry and with a supply chain that has been snarled by chip shortages. “I think it’s a good thing if we can have diversification of the supply chain so it’s not so concentrated in one area,” he said.

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Tibbils said potential military threats against Taiwan from China could be a massive problem for the supply chain, considering TSMC’s position as the world’s largest chip maker. “With the concerns about geopolitical issues and what could happen with Taiwan – that could be devasting to the semiconductor industry,” he said. “It’s good for partners and distributors like us to diversify where things are made and how they are made.”

Intel is showing its willingness to work with fierce competitors to make sure the U.S. market remains a global leader.

“The semiconductor industry in the U.S. is at an inflection point,” Intel’s Ann Kelleher, executive vice president and general manager of technology development, said in a statement. “The Semiconductor Alliance is an open collaboration that will leverage current and future R&D investments by industry and government throughout the U.S. and will support the spirit of the CHIPS for America Act to re-establish American industry leadership.”

The CHIPS for America Act is a $58 billion spending bill recently passed by the U.S. Senate now awaiting a vote by the House of Representatives.

“Micron is proud to bring our world-leading semiconductor member and storage technology experience to the Semiconductor Alliance, an important public-private intitiative intended to strengthen U.S. leadership in advanced technology for the long term with sustained commitments to R&D,” Micron’s Scott DeBoer, executive vice president of technology and products organization.

Laurie Giandomenico, MITRE chief acceleration officer, said in a statement, “The United States has an opportunity for generational impact in the face of growing strategic competition with China. By forging innovative partnerships based on trust and neutrality, Intel, Micron, Analog Devices and MITRE Engenuity through the Semiconductor Alliance are aligning the interests of industry, government, and universities to collaborate and grow the semiconductor industry on U.S. soil.”