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What just happened? It is often said that global politics (and wars) are driven by three factors: oil, land and religion. According to Intel CEO Pat Gelsinger, semiconductors will join that list and become more important than the location of oil reserves in the next five decades.
Speaking to CNN’s Julia Chatterley at the World Economic Forum in Davos, Gelsinger noted that the location of oil reserves has defined geopolitics for the past 50 years. But over the next half century, there will be a more important factor: “Where are the technology supply chains and where are the semiconductors being created,” the executive explained.
In addition to plants in oregon, New Mexico and Arizona (which the company is expanding), Intel is building new facilities in Ohio while expanding its international operations in Israel, Ireland, Malaysia, Germany and Italy. The company said it would invest $20 billion in two plants in the U.S. and up to $90 billion in new plants in Europe. Gelsinger says these investments not only benefit Intel, but are also necessary for the “globalization of the most important resource for the future of the world.”
“We need this geographically balanced and sustainable supply chain,” he said.
The semiconductor shortage caused by the pandemic has affected almost all chip products, including cars. This led to the passage of the $280 billion United States Microcircuits and Science Act, of which $52 billion would go to subsidies to chipmakers. “If we’ve learned anything from the Covid crisis and this multi-year journey we’ve been through, it’s that we need resilience in our supply chains,” Gelsinger said.
of Intel CEO said his company and others are now waiting for CHIP Act funds to be distributed, which he expects to happen this year. “I’m investing, please come with the money. Because we assume that they will help us make these huge investments.”
Another factor behind the drive to diversify the semiconductor supply chain is Taiwan. Exports of integrated circuits from the country, which provides about 50% of the global market, grew by 18.4% last year. Gelsinger previously warned of the dangers of relying on the island nation in light of China’s aggressive actions. “Taiwan is an unstable place,” he said in 2021 — Beijing sent 27 fighter jets to Taiwan’s Air Defense Identification Zone […] Does that make it easier or less for you?’
Added to these concerns are the words of Chen Wenlin, chief economist at the state-run China Center for International Economic Exchange, who said last year that China should seize TSMC if the U.S. imposed “devastating sanctions” on China — this was before the U.S. imposed even tougher chip-related sanctions on the country . TSMC’s chairman has since said that no one can control the company by force, while Taiwan has insisted that there is no need to destroy TSMC’s facilities in the event of a Chinese invasion.
What just happened? It is often said that global politics (and wars) are driven by three factors: oil, land and religion. According to Intel CEO Pat Gelsinger, semiconductors will join that list and become more important than the location of oil reserves in the next five decades.
Speaking to CNN’s Julia Chatterley at the World Economic Forum in Davos, Gelsinger noted that the location of oil reserves has defined geopolitics for the past 50 years. But over the next half century, there will be a more important factor: “Where are the technology supply chains and where are the semiconductors being created,” the executive explained.
In addition to plants in oregon, New Mexico and Arizona (which the company is expanding), Intel is building new facilities in Ohio while expanding its international operations in Israel, Ireland, Malaysia, Germany and Italy. The company said it would invest $20 billion in two plants in the U.S. and up to $90 billion in new plants in Europe. Gelsinger says these investments not only benefit Intel, but are also necessary for the “globalization of the most important resource for the future of the world.”
“We need this geographically balanced and sustainable supply chain,” he said.
The semiconductor shortage caused by the pandemic has affected almost all chip products, including cars. This led to the passage of the $280 billion United States Microcircuits and Science Act, of which $52 billion would go to subsidies to chipmakers. “If we’ve learned anything from the Covid crisis and this multi-year journey we’ve been through, it’s that we need resilience in our supply chains,” Gelsinger said.
of Intel CEO said his company and others are now waiting for CHIP Act funds to be distributed, which he expects to happen this year. “I’m investing, please come with the money. Because we assume that they will help us make these huge investments.”
Another factor behind the drive to diversify the semiconductor supply chain is Taiwan. Exports of integrated circuits from the country, which provides about 50% of the global market, grew by 18.4% last year. Gelsinger previously warned of the dangers of relying on the island nation in light of China’s aggressive actions. “Taiwan is an unstable place,” he said in 2021 — Beijing sent 27 fighter jets to Taiwan’s Air Defense Identification Zone […] Does that make it easier or less for you?’
Added to these concerns are the words of Chen Wenlin, chief economist at the state-run China Center for International Economic Exchange, who said last year that China should seize TSMC if the U.S. imposed “devastating sanctions” on China — this was before the U.S. imposed even tougher chip-related sanctions on the country . TSMC’s chairman has since said that no one can control the company by force, while Taiwan has insisted that there is no need to destroy TSMC’s facilities in the event of a Chinese invasion.
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