Making semiconductors in U.S. is more important than oil reserves
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IntelOn Wednesday, CEO Pat Gelsinger compared semiconductors to oil. This suggests that computers chips will be a key component of international relations over the next decade.
“Oil reserves have been the core of geopolitics over the past five decades. What are the fabs? [factories]Gelsinger stated that the digital future was more important than ever in an interview with CNBC. “Squawk Box.”Let’s create them wherever we want them to go, and make the U.S. the place we all want it to be.
Shorthand for fabrication plants. These are factories that produce semiconductors. The largest number of chips currently manufactured in Asia is made here. especially in Taiwan. This concentration raises natural security concerns because China has increased its military presence close to the democratically-ruled island Beijing claims it owns.
The shortage of semiconductors was also caused by production problems that were not compatible with the growing demand for semiconductors used in electronic products, such as smartphones, cars, and washing machines.
Intel is pushing to increase geographical diversification of chip manufacturing under Gelsinger’s direction. Intel recently announced large-scale investments in the construction of new fabs. in the U.S.And Europe.Intel started work last yearArizona has two chip factories.
During an event about the continuing supply chain issues in Washington DC’s South Court Auditorium, President Joe Biden slaps Intel CEO Patrick Gelsinger. The event was held in Washington DC’s Washington Executive Office Building (January 21, 2022). Gelsinger stated that Intel Corp. would spend an initial $20Billion in Ohio to create a new semiconductor manufacturing site.
Chip Somodevilla | Getty Images
The Santa Clara, California-based company — an influential firm in the early days of Silicon Valley — also has been pushing officials in both Washington and Brussels to support legislation that would include government money to assist in semiconductor production.
Gelsinger’s comments Wednesday came ahead of his testimony before the U.S. SenateIn support of a $52B subsidy plan
Cloud computing’s former chief executive VMWareGeslinger isn’t the only one to make comparisons between semiconductors and oil. His remarks are more salience due to increased oil prices and the Russia-Ukraine conflict.
It is yet another example of increased fuel prices due to geopolitical tensions. This raises concerns over the impact they have on American consumers. Similar situations have occurred in the past, as was the case with the energy crisis that hit the 1970s.
Geslinger voiced concern about the humanitarian consequences of Russia’s aggression on Ukraine and also pointed out economic implications.
“While the Russia-Ukraine situation isn’t central to any of the supply chains for semiconductors, it just reinforces the geopolitical instability and the urgency around building supply chains that are geographically balanced — U.S., Europe and Asia — and far more resilient for the digital future,” he said.
Everything digital is powered by semiconductors. It’s vital that these fabs are built where they will be used.
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