Intel CEO says CPU and GPU chips are the new oil and gas of geopolitics


Speaking with CNN, Intel CEO Pat Gelsinger says semiconductor chip supply will be more important than oil and gas for “the next 5 decades.”

In a recent interview with CNN, Intel CEO Pat Gelsinger stressed the importance of semiconductor chip supply in relation to geopolitics. According to Gelsinger, global politics will soon be dominated by the “availability, trade and investment in microchips.” Elaborating on the matter further, Gelsinger noted that the location of “oil reserves [has] defined geopolitics for the last five decades.”

Looking at the next 5 decades, this is set to shift with Gelsinger stating that, “Where the technology supply chains are, and where semiconductors are built, is more important for the next 5 decades.” In addition to this, Gelsinger stresses the need for a “geographically balanced, resilient supply chain” when it comes to the manufacturing of semiconductor chips. Especially in regards to how chip manufacturing at present is largely concentrated in Asia in countries like China and Taiwan.

Intel semiconductor chip manufacturing image as provided by Intel's official website
© Intel

To combat this, Intel shared plans last year to invest $20 billion in the construction of two new chip-making facilities in the U.S. in addition to $90 billion towards new factories in Europe. Touching on this subject Gelsinger told CNN, “If we’ve learned one thing from the COVID crisis and this multi-year journey that we’ve been on it’s we need resilience in our supply chains.”

Looking ahead, Gelsinger senses a tough economic environment “in the near term” before lamenting about the challenges of being a “CEO these days.”

Intel semiconductor chip manufacturing image as provided by Intel's official website
© Intel

Intel isn’t alone when it comes to expanding chip-making efforts, with President Joe Biden passing the CHIPS and Science Act last year that aims to invest more than $200 billion to help and encourage companies like Intel establish domestic chip-making and research in the United States.

Now that you’re caught up on the geopolitics of semiconductor chips as talked about by Intel CEO Pat Gelsinger, be sure to read through some of our previous coverage as well including Biden expanding U.S. semiconductor export limitations to more Chinese companies, and how Micron plans to invest $40 billion in US chip manufacturing with help of CHIPS Act.

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They’re also a Tetris fanatic who’s fiercely competitive in games like Tetris 99… and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.





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