US May Exempt Latest Chip Fabs From Eco Red-tape, But Power Is Still A Trip

Comment The multibillion-dollar gamble of Intel and other semiconductor industry players on US-based chipmaking may be about to give America's power infrastructure a bit of a headache.

Intel and rivals including TSMC are fast-tracking plans for advanced fabs on US soil, all thanks to the 2022 CHIPS and Science Act providing public subsidies to foster domestic semiconductor production and R&D.

A law bill [PDF], providing some exemptions for chip makers so they can sidestep environmental reviews and lawsuits that delay factory construction, is reportedly headed to President Joe Biden's desk for approval.

It's great for those American manufacturers, as it may help hasten construction, but potentially sidestepping those rules won't matter if the chip giants can't solve an often-overlooked problem, besides the need for an incredible amount of water: Power.

There are two issues are play here. Getting enough supply from the grid, and then cleaning that power to direct current (DC).

Stable supply

State-of-the-art factories like the ones Intel and its rivals are trying to build in the United States require incredibly stable DC capable of driving ridiculously precise fabrication machinery.

Like electricity grids over the world, America's is optimized for AC transmission. Thus there needs to be equipment installed at and/or near the fabs to not only convert the supply AC to DC but to also then output ultra-clean DC, and in a way that scales to the size and requirements of a power-hungry top-tier semiconductor factory; or equipment that can work with a grid supplier to bring in high-voltage DC, then buffer and condition it as needed; or a combination for redundancy.

Either way, it requires space, planning, installation, maintenance, and don't forget energy, no matter what environmental exemptions have been or will be granted. That non-trivial power situation needs addressing.

It's not just Intel and TSMC facing this; the entire semiconductor manufacturing ecosystem requires stable and precise DC power into their equipment. All those fancy machines – nanometer-level lithography systems, ion implanters, etching tools – require a steady stream of purified high-voltage DC juice. One relatively little fluctuation and you're looking at a huge multi-million-dollar disruption to production.

If the chip giants want their shiny new fabs to work, they are therefore going to have to fork out big time on DC infrastructure and put it all somewhere. We're talking substations and converters, and upgrading existing systems, which isn't cheap. Intel et al may have environmental exemptions, but there's no getting round that need for perfect industrial-level DC supply.

Reliable supply

It's one thing to have to build out or upgrade equipment to provide a super-stable supply for your cutting-edge litho lines. The next big question is can US power infrastructure handle the demand from the fabs in the first place?

An insider close to Intel's operations who spoke to The Register hinted the x86 giant's already courting power utilities for assistance in terms of getting enough juice in as well as stabilizing it.

If Intel's going to hit production timelines, it has to build the power grid alongside the fabs

"This isn't something you solve overnight," they said. "If Intel's going to hit production timelines, it has to build the power grid alongside the fabs."

Being unable to secure and stabilize power supplies will likely hold up construction of facilities and jeopardize all of those juicy federal incentives. There's a lot riding on getting enough suitable electricity into these sites.

The rising energy demands of AI processing have already started pushing electrical systems to their limits. Chip plants aren't going to be a light burden, either.

A silver lining in all this is renewable energy. Solar not only produces power, but also DC natively, making that source somewhat easier to integrate into chip fabs than grid AC – once regulated and smoothed with batteries or other supplies. The Skyhawk Solar project could generate up to 100MW to feed Google's datacenters, for example.

And, of course, Intel's happy to remind us that it's all about sustainability these days, promising green energy solutions in its operations, as showcased during its Sustainability Summit earlier this year.

In theory, coupling renewables to processor factories could kill two birds with one stone: Help to save the planet, and meet Intel's power needs. Unfortunately reality's a bit harsher. Renewable infrastructure upgrades and backing systems are going to need a lot of work. So really, there are no quick fixes.

The environmental elephant in the room

As if the potential power problem wasn't enough, Intel's fab expansion, specifically, is already stirring up controversy with environmental groups. Semiconductor manufacturing not only needs a lot of water, it is notoriously energy-guzzling, and that means emissions. Lots of them. Greenpeace has been particularly vocal about manufacturers' environmental impacts, pointing out that fab operations can be anything but eco-friendly.

One might argue potential new federal legislation that fast-tracks semiconductor construction by dodging all of those vital environmental reviews could be bad news. You get your fab, but you might just leave a trail of carbon footprints that equate to the size of Texas.

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The US's bet on domestic semiconductor production is part of a grand strategy to cut dependence on Asian chip suppliers (yes, Taiwan, we're looking at you.) It's a vital move for national security and economic stability, or so the thinking goes. While the CHIPS Act funding is pivotal for American manufacturing, the critical power issues cannot be ignored.

Without a robust power infrastructure in place, the ambitious plans of Intel and co could face unexpected delays and spiraling costs. The real question is whether America's power grid can keep pace with that vision. For now, it's a bet which not only relies on semiconductor manufacturing, but also on the capability of the US grid to sustain the power growth needed to make it happen. ®