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    Commerce Dept. Is on the Front Lines of China Policy

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    The department has confronted the challenge of China by restricting key exports, a policy that is likely to continue in the Trump administration.The Commerce Department has traditionally focused on promoting the interests of American business and increasing U.S. exports abroad. But in recent years, it has taken on a national security role, working to defend the country by restricting exports of America’s most powerful computer chips.While the Trump administration is likely to remake much of the Biden administration’s economic policy, with a renewed focus on broad tariffs, it is unlikely to roll back the Commerce Department’s evolution.“I’m truthfully not terribly worried that the Trump administration will undo all the great work we’ve done,” Gina Raimondo, the commerce secretary, said in an interview. “Number one, it’s at its core national security, which I hope we can all agree on. But two, it is the direction that they were going in.”It was the first Trump administration that took the initial steps toward the Commerce Department’s evolution, Ms. Raimondo noted, with its decision to put the Chinese telecommunications company Huawei on the “entity list.” Companies on the list are deemed a national security concern, and transfers of technology to them are restricted.Ms. Raimondo came into the commerce job focused on confronting the challenge of China by building upon the Trump administration’s actions.She has overseen a significant expansion of U.S. economic and technology restrictions against China. The Biden administration transformed the tough but sometimes erratic actions the Trump administration had taken toward Beijing into more sweeping and systematic limits on shipping advanced technology to China.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Intel CEO Pat Gelsinger Steps Down Amid Chipmaker’s Struggles

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      Pat Gelsinger stepped down after nearly four years at the helm of the company, Intel said Monday.Intel’s chief executive officer, Pat Gelsinger, stepped down after nearly four years leading the semiconductor company, Intel announced Monday, a surprise leadership change as the chipmaker has struggled in recent months.Mr. Gelsinger, who took the helm in 2021, also resigned from the company’s board of directors. He will be replaced in the interim by two Intel executives, David Zinsner and Michelle Johnston Holthaus. The company said it would continue its search for permanent replacements.The leadership change signals Intel’s growing urgency to turn around its business, which has been left in the dust during the lucrative artificial intelligence boom that has turned its rival chipmaker, Nvidia, into one of the world’s most valuable companies. Intel recently cut 15,000 jobs, and its revenue declined more than 30 percent from 2021 through 2023.Shares of Intel rose about 5 percent in premarket trading, before paring back some of those gains, after the company announced Mr. Gelsinger’s retirement. A loss in market share and struggles in the A.I. market have contributed to a 52 percent slump in the company’s stock price so far this year.“We have much more work to do at the company and are committed to restoring investor confidence,” Frank Yeary, who will serve as the company’s interim executive chair on the board, said in a statement.Mr. Gelsinger said in the statement that the move was bittersweet. “It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics,” he added.Mr. Gelsinger first joined Intel in 1979, eventually ascending to become the company’s chief technology officer during his initial 30-year stint at the chipmaker. He led the cloud computing company VMware before rejoining Intel as chief executive in early 2021.For decades, Intel was the industry’s leading chip company. Its semiconductors were the digital engines in more than 80 percent of personal computers, and it later adapted that technology for larger computers in data centers.But in recent years, Intel lost its one-time dominance. It was too wedded to its highly lucrative PC-era technology, analysts say, as others — most notably, Nvidia — pioneered new designs. In manufacturing, Intel steadily lost its lead to Taiwan Semiconductor Manufacturing Company.As chief executive, Mr. Gelsinger focused on restoring the company’s onetime lead in chip manufacturing technology, but longtime company watchers said Intel badly needed more popular products — such as A.I. chips — to bolster declining revenue.The company had faced a number of recent setbacks, including the Biden administration last week saying it would reduce the total amount of money granted to Intel under the CHIPS Act. Intel had extended timelines for some projects beyond a government deadline of 2030.In October, the company posted a $16.6 billion quarterly loss — its biggest in its 56-year history.Steve Lohr More

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      Washington Curtails Intel’s Chip Grant After Company Stumbles

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      The Biden administration is reducing its award to the chip maker, partly to account for a multibillion-dollar military contract.The Biden administration plans to reduce Intel’s preliminary $8.5 billion federal CHIPS grant, a move that follows the California-based company’s investment delays and broader business struggles.Intel, the biggest recipient of money under the CHIPS Act, will see its funding drop to less than $8 billion from the $8.5 billion that was announced earlier this year, four people familiar with the grant said. They all spoke on the condition of anonymity because the final contract had not yet been signed. The change in terms takes into account a $3 billion contract that Intel has been offered to produce chips for the U.S. military, two of these people said.The government’s decision to reduce the size of the grant follows Intel’s move to delay some of its planned investments in chip facilities in Ohio. The company now plans to finish that project by the end of the decade instead of 2025. The chip maker has been under pressure to reduce costs after posting its biggest quarterly loss in the company’s 56-year history.The move by the Biden administration also takes into account Intel’s technology road map and customer demand. Intel has been working to improve its technological capacity to catch up to rivals like Taiwan Semiconductor Manufacturing Company, but it has struggled to convince customers that it can match TSMC’s technology.Intel’s troubles have been a blow to the Biden administration’s plans to rev up domestic chip manufacturing. In March, President Biden traveled to Arizona to announce Intel’s multibillion-dollar award and said the company’s manufacturing investments would transform the semiconductor industry. Intel’s investment was at the forefront of the administration’s ambition to return chip manufacturing to the United States from Asia. The CHIPS Act, a bipartisan bill passed in 2022, provided $39 billion in funding to subsidize the construction of facilities to help the United States reduce its reliance on foreign production of the tiny, critical electronics that power everything from iPads to dishwashers.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Nvidia Will Replace Intel in the Dow Jones Stock Index

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      The change, starting next Friday, lifts a dominant player in artificial intelligence over its chip-making rival, which has struggled to keep up.The chip-maker Nvidia will soon replace its rival Intel in the Dow Jones industrial average, S&P Dow Jones Indices said on Friday, reflecting Nvidia’s dominance in the world of artificial intelligence.S&P Dow Jones Indices, which maintains the stock index, said in a statement that the change would take place before the opening of trading next Friday “to ensure a more representative exposure to the semiconductors industry.”Nvidia established an early foothold in the A.I. revolution, tailor-making its chips for machine learning tasks and building a community of A.I. programmers who were eager to develop their technology on the company’s hardware. The bet paid off. Nvidia now accounts for the majority of A.I. chip sales and has become the second-most-valuable company in the world, slightly trailing Apple at $3.32 trillion after trading hours on Friday.Intel, which makes the chips that serve as the brains of most computers, once considered buying Nvidia. But its board resisted the acquisition, and Nvidia went on to become a dominant player in the A.I. boom while Intel struggled to keep up. Intel’s market capitalization has fallen below $1 trillion.“The thing that we understood is that this is a reinvention of how computing is done,” Jensen Huang, Nvidia’s chief executive and one of its founders, told The New York Times last year. “And we built everything from the ground up, from the processor all the way up to the end.”A recent stock split at Nvidia prompted speculation that it would replace Intel on the Dow Jones. In June, Nvidia unveiled a 10-for-one stock split that would make it easier for a retail investor to buy into the company without diluting its valuation.Spokeswomen for Nvidia and Intel declined to comment. More

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      Trump Attacks Bipartisan Semiconductor Law on Joe Rogan Podcast

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      Former President Donald J. Trump on Friday blasted the CHIPS and Science Act, a bipartisan law aimed at reducing America’s reliance on Asia for semiconductors by providing billions in subsidies to encourage companies to manufacture more chips in the United States.“That chip deal is so bad,” Mr. Trump said during a nearly three-hour episode of “The Joe Rogan Experience.” “We put up billions of dollars for rich companies.”Mr. Trump argued that the federal government could have imposed a series of tariffs to make chip manufacturers spend more of their own money to build plants in the United States. He also argued that the law would not make the “good companies” invest in the United States.“You didn’t have to put up 10 cents,” Mr. Trump said. “You tariff it so high that they will come and build their chip companies for nothing.”That argument does not take into account how reliant the United States is on foreign nations for chips, particularly those made in Taiwan. Semiconductors have become critical to the U.S. economy, given that they are used in everything from cars to weapons systems and computers. Yet only about 10 percent of the world’s semiconductors are produced in the United States, down from about 37 percent in 1990.America’s heavy reliance on Taiwan’s semiconductors has been a growing source of concern among U.S. officials, given China’s ongoing threats to invade the self-governing island.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Microsoft and OpenAI’s Close Partnership Shows Signs of Fraying

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      The “best bromance in tech” has had a reality check as OpenAI has tried to change its deal with Microsoft and the software maker has tried to hedge its bet on the start-up.Last fall, Sam Altman, OpenAI’s chief executive, asked his counterpart at Microsoft, Satya Nadella, if the tech giant would invest billions of dollars in the start-up.Microsoft had already pumped $13 billion into OpenAI, and Mr. Nadella was initially willing to keep the cash spigot flowing. But after OpenAI’s board of directors briefly ousted Mr. Altman last November, Mr. Nadella and Microsoft reconsidered, according to four people familiar with the talks who spoke on the condition of anonymity.Over the next few months, Microsoft wouldn’t budge as OpenAI, which expects to lose $5 billion this year, continued to ask for more money and more computing power to build and run its A.I. systems.Mr. Altman once called OpenAI’s partnership with Microsoft “the best bromance in tech,” but ties between the companies have started to fray. Financial pressure on OpenAI, concern about its stability and disagreements between employees of the two companies have strained their five-year partnership, according to interviews with 19 people familiar with the relationship between the companies.That tension demonstrates a key challenge for A.I. start-ups: They are dependent on the world’s tech giants for money and computing power because those big companies control the massive cloud computing systems the small outfits need to develop A.I.No pairing displays this dynamic better than Microsoft and OpenAI, the maker of the ChatGPT chatbot. When OpenAI got its giant investment from Microsoft, it agreed to an exclusive deal to buy computing power from Microsoft and work closely with the tech giant on new A.I.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Biden to Sign Bill Allowing Chip Projects to Skirt Key Environmental Review

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      The legislation, which would weaken federal environmental reviews for certain semiconductor manufacturing projects, has divided Democrats.More than two years ago, President Biden signed a law that aimed to ramp up the nation’s production of semiconductors by offering generous subsidies and tax credits to companies. Since then, chip manufacturers have invested billions of dollars into new plants across the country.But industry groups, along with federal officials, have long warned that lengthy federal environmental reviews could delay manufacturing projects for months or years, which could slow the country’s ability to scale up its chip manufacturing capacity.In the coming days, Mr. Biden is set to sign a bill that would weaken federal environmental reviews for certain semiconductor manufacturing projects that receive subsidies through the 2022 CHIPS and Science Act. The bill, which has divided Democrats, underscores the challenges facing Mr. Biden as he tries to advance his economic agenda alongside his ambitious climate goals.The legislation would exempt qualifying chip projects from reviews under the National Environmental Policy Act, or NEPA, which requires federal agencies to assess the potential environmental effects of proposed major federal actions before they can proceed. The House passed the bill last week, and the Senate unanimously passed it in December.Proponents say the legislation would help to expedite the construction of chip manufacturing facilities, which would strengthen the U.S. economy and help to reduce the nation’s dependence on other countries for critical chips that can power items as varied as smartphones, cars and weapons systems. They say that projects will still have to comply with various federal, state and local environmental regulations and permitting requirements.Democrats who oppose the bill, however, say it would allow companies to skirt an important step aimed at reducing potential harms to the environment and workers. They argue that taxpayer-funded projects should be subject to a more holistic federal environmental review process, which would allow for more transparency and community input.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Qualcomm Asked Rival Intel if It Would Consider Sale

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      While Intel has struggled in recent years, other chipmakers are thriving because of a boom in demand.The chipmaker Qualcomm has approached its rival Intel in recent days about the possibility of acquiring the slumping Silicon Valley giant, two people familiar with the matter said Friday, requesting anonymity because the talks were confidential.Qualcomm has not yet made an official offer for Intel, one of the people said, and the obstacles to a deal remain steep. Any deal would likely draw significant regulatory scrutiny, given the mammoth size and national security importance of both chip companies. It is unclear whether regulators would allow Qualcomm to buy Intel without taking on its struggling foundry business, and it remains equally unclear whether Qualcomm would want to take on that complex endeavor. A deal would also be costly. Intel, which has seen its shares fall nearly 40 percent over the last year, has a market capitalization of $93 billion. Qualcomm, which has seen its shares rise 55 percent, has a market value of $169 billion. Qualcomm and Intel, through spokeswomen, both declined to comment. The Wall Street Journal earlier reported Qualcomm’s approach. That any chip-making rival would consider trying to buy Intel would have been inconceivable a decade ago. But years of management issues and whiffs on technology transitions have weakened what was once one of Silicon Valley’s most powerful companies.Intel missed out on selling chips for mobile phones and has failed to capitalize on the boom in artificial intelligence, a field rival Nvidia now dominates with specialized chips used in data centers. Intel’s chip manufacturing operations, once the most advanced, also lost a technology lead to Taiwan Semiconductor Manufacturing Company.Intel’s problems were underscored in early August, when it announced a $1.6 billion quarterly loss and plans to cut 15,000 jobs. The company, the largest planned recipient of federal financing under legislation called the CHIPS Act, on Monday announced other moves that include plans to pause the setting up of new plants in Germany and Poland.Qualcomm, based in San Diego, is a leader in cellular technology and provides chips used in flagship smartphones from companies such as Apple and Samsung Electronics. Unlike Intel, Qualcomm has never operated factories, a costly business that most chip designers avoid. So it would seem more likely to be interested in the Intel operations that design chips, as well as its broad expertise in PC software and channels for selling those systems, said Patrick Little, a former Qualcomm executive who now is chief executive of SiFive, a Silicon Valley start-up that sells rival microprocessor designs.“Those are things Qualcomm would have to mature on their own over time,” Mr. Little said. “If they worked with or somehow had a piece of Intel that could accelerate that part of their strategy.”Any effort to buy Intel would likely face a tough antitrust review and would be scrutinized closely on national security grounds, since its design and manufacturing operations are important for defense applications and overall U.S. competitiveness in semiconductors.Lauren Hirsch reported from New York and Don Clark from San Francisco. More

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      Nvidia Shares Tumble After Reports of a Chip Delay

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      Nvidia shares tumbled more than 10 percent in early trading on Monday after reports that the company would delay shipments of its newest artificial intelligence chip, but the stock later rebounded as investors’ concerns about the costs of the delay faded.The Information, a tech news outlet, reported on Friday that Nvidia would be shipping its latest graphics processing unit, or GPU, which make it possible to create A.I. systems, three months later than planned. Nvidia said in a statement that production for the chip, which is called Blackwell, was on track for later this year and added that customer orders and interest were high.Stacy Rasgon, an analyst with Bernstein who follows Nvidia, said there was no need to panic because cloud computing companies such as Microsoft and Amazon were continuing to increase their spending on A.I. data centers. That expansion means that Nvidia chips will be in demand, he said.“Nvidia’s competitive window is so large right now that we don’t think a three-month delay will cause significant share shifts,” Mr. Rasgon said.Nvidia has been one of the hottest stocks in technology, fueled by the frenzy over A.I. The company’s market value has increased to $2.43 trillion from $1 trillion a year ago, making it more valuable than Alphabet and Amazon. But its rise has been marked by volatility, as investors waffle between enthusiasm and skepticism about the potential for A.I. to generate new business. More