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US chipmaking nears death: Intel warns it may give up on cutting-edge chips

Intel's CEO Lip-Bu Tan speaks at the company's Annual Manufacturing Technology Conference in San Jose.
Intel CEO Lip-Bu Tan speaks at the company’s Annual Manufacturing Technology Conference in San Jose.

  • Intel may halt development of its next-gen chip, 14A, due to financial concerns.
  • The 14A chip has been crucial for Intel to compete with Taiwan’s leading chipmaker, TSMC.
  • Ending 14A would be a heavy blow for US chipmaking, increasing reliance on overseas production.

Is this the beginning of the end for American chipmaking? It could very well be.

Intel, the iconic US semiconductor manufacturer, warned on Thursday that it may stop developing its next-generation chip, known as 14A.

The company said in a regulatory filing on Thursday that it is focused on developing 14A and finding a large customer. It was Intel’s first warning of the possible fallout from failure.

“If we are unable to secure a significant external customer and meet important customer milestones for Intel 14A, we face the prospect that it will not be economical to develop and manufacture Intel 14A and successor leading-edge nodes on a go-forward basis,” the company wrote. “In such event, we may pause or discontinue our pursuit of Intel 14A and successor nodes.”

A lot of hope has been riding on 14A, a cutting-edge chip and manufacturing system that is one of Intel’s last chances to catch up with TSMC, the Taiwan-based company that has become the world’s leading chipmaker.

Intel dominated the semiconductor industry for decades, but missed two major technological waves: mobile and AI. The company designs chips and also manufactures them. Most rivals gave up their manufacturing operations years ago and now send their designs to TSMC to make.

If Intel really gives up on 14A, this could be a death blow to US chip manufacturing. While this move may make financial sense for Intel, it could be bad news strategically for America. That’s because most cutting-edge semiconductors are made in other parts of the world, especially in areas where China holds increasing influence. The end of 14A would exacerbate this situation.

“Intel, the home of Moore’s Law, for the first time in history, is evaluating if it will continue at the leading edge,” Semianalysis, a chip industry analysis firm, wrote on X on Thursday. “Just like that we could be talking about a TSMC monopoly, and the death of American made semiconductors forever.”

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Trump’s FCC approves Skydance-Paramount merger — with conditions about the company’s content

Paramount building
The FCC agreed to Skydance’s acquisition of Paramount Global.

  • The FCC said it approved Skydance’s $8 billion acquisition of Paramount Global — with conditions.
  • Skydance committed to including a “diversity of viewpoints” in its content, the FCC said.
  • The approval comes weeks after Paramount agreed to pay $16 million to settle a lawsuit brought by Trump.

The Federal Communications Commission’s approval of the merger between Skydance Media and Paramount Global comes with a lot of conditions on the content the company can produce across its programming, which includes CBS and Nickelodeon.

The FCC said in a statement Thursday that it approved Skydance’s $8 billion acquisition of the media giant. Brendan Carr, chairman of the FCC, said that Americans “no longer trust the legacy national news media” and that Skydance had agreed to make “significant changes” at CBS.

“In particular, Skydance has made written commitments to ensure that the new company’s programming embodies a diversity of viewpoints from across the political and ideological spectrum,” Carr said in a statement.

“Today’s decision also marks another step forward in the FCC’s efforts to eliminate invidious forms of DEI discrimination,” he added.

As part of its commitment to “unbiased journalism,” Skydance has agreed to have an ombudsman for at least two years who will report to the new company’s president and evaluate complaints of bias. Specifics about how the ombudsman would be chosen or operate were not immediately clear, and the FCC did not immediately respond to a request for more information.

Skydance did not immediately respond to a request for comment from Business Insider.

The approval of the merger comes weeks after Paramount settled a lawsuit brought by President Donald Trump. Trump sued the company over an interview with Kamala Harris that aired on “60 Minutes,” accusing CBS of “deceptive editing.”

Paramount said on July 2 that it agreed to pay $16 million to settle the lawsuit, which included funds to go toward Trump’s future presidential library. The settlement did not include an apology.

Critics, including Sen. Elizabeth Warren, accused Paramount of folding to Trump in order to get approval for the merger, and media insiders told Business Insider at the time that they believed the settlement would help the company get the merger approved.

On July 7, Paramount Global’s board approved the merger with Skydance, creating “New Paramount” and ending a tumultuous dealmaking process.

The approval also came a week after CBS canceled “The Late Show With Stephen Colbert.” Lawmakers, including Warren and Sen. Adam Schiff, said the public deserved answers about whether it was politically motivated.

CBS said the cancellation was “purely a financial decision.”

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