Economic Impact of a Domestic Semiconductor Foundry

This document is a report that examines the economic implications of establishing a domestic semiconductor foundry in the United States, focusing on Intel's role in this context. It outlines the critical risks facing U.S. semiconductor manufacturing, which have traditionally been viewed through a national security lens but are increasingly influenced by economic factors such as market stability and pricing. The report discusses the growing demand for compute power driven by artificial intelligence and how this demand intersects with the competitive landscape of semiconductor manufacturing. It details the vulnerabilities in the global supply chain, including the concentration of leading-edge foundry capabilities and the dependency of U.S. fabless companies on foreign foundries. The document also highlights the potential macroeconomic consequences of monopolistic pricing in the semiconductor industry and the importance of Intel's foundry ambitions in providing a counterbalance to these risks, ultimately affecting the broader economy and innovation landscape.