Intel CEO explains: Semiconductor becomes more important than oil

One of the factors that have the greatest impact on today’s global politics is oil. But according to Intel CEO Pat Gelsinger, the semiconductor industry will become more important than the location of oil reserves over the next 50 years.

Semiconductor will be more important than oil industry

Speaking to CNN’s Julia Chatterley at the World Economic Forum in Davos, Gelsinger said that the location of oil reserves has determined geopolitics for the last 50 years, but that oil will not be the most important factor in the next half century: “It matters where the technology supply chains are and where the semiconductors are made. it will be.”

In addition to factory facilities in Oregon, New Mexico and Arizona, Intel is expanding its international operations in Israel, Ireland, Malaysia, Germany and Italy, while building new facilities in Ohio. The company announced that it has invested $20 billion in two US factories and up to $90 billion in new European factories. Gelsinger says this investment not only benefits Intel, but is also essential to “globalizing the most critical resource for the world’s future.” “We need a geographically stable, flexible supply chain,” said Gelsinger.

Diversification of supply chains will be important

The semiconductor shortage brought by the pandemic has affected almost every product with a chip, including vehicles. It even led to the US passing the $280 billion CHIPS Act, of which $52 billion would go to subsidies for chip manufacturers. “If we have learned anything from the Covid crisis and this multi-year journey we embarked on, it is that we need flexibility in our supply chains,” Gelsinger said. used the phrases.

Another factor behind the effort to diversify the semiconductor supply chain is Taiwan. Chip exports from the country, which feeds approximately 50% of the world market, increased by 18.4% last year. However, Taiwan and China are in increasing tension. This could cause a new chip crisis.

Chen Wenling, chief economist at the China Center for International Economic Exchanges, said last year that China should take over TSMC if the US imposes “destructive sanctions” on China. This statement was made before the US sanctions. The chairman of TSMC has since stated that no one can forcefully control the company.