Intel CEO Pat Gelsinger said on Monday (24) that the recent US imposition of export controls on semiconductors exported to China is inevitable because the US wants to stay at the forefront of the competition process between the US and China. .
The United States announced earlier this month that it would impose export controls on China, requiring companies to obtain government permits before exporting certain supercomputing chips and advanced manufacturing equipment. In this regard, Ji Singer said that this is an inevitable transfer of the semiconductor supply chain.
“I think this geopolitical event is inevitable and, for this reason, it is important to promote the rebalancing of the supply chain,” he told the WSJ’s Tech Live forum.
He reiterated that the United States must bring back the most advanced chip manufacturing from Asia to Europe and the United States to ensure the supply of semiconductors for artificial intelligence, national security and computing. “Taiwan plays such an important role in the technology supply chain, but it is very unstable,” she said. “We need a balance … just as oil reserves have defined geopolitics for the past 50 years, but looking at the next 50 years, where fabs are. Location is more important.”
Kissinger was also previously active in the government’s approval of the bipartisan “American Chips and Science Act,” which is expected to allocate more than $ 52 billion to reward companies for semiconductor research and development and factory construction. in the United States.
Intel itself has also spent a lot of money expanding its factory layout, including building new factories in Ohio, Germany, and other locations in the United States. He said Intel hopes to reduce the percentage of the Asian supply chain from 80% to 50% within 10 years, while increasing the US and Europe to 30% and 20% respectively.
On the same day, Intel also announced the creation of the American Advanced Chip Manufacturing Alliance, which produces advanced chips that are sensitive to national security.
Intel is moving memory chip manufacturing in Dalian, China to SK Hynix. The company recorded sales of over $ 21 billion in China last year.
Intel (INTC-USA) will announce the third quarter earnings after the market close on October 27th. The stock closed up 0.78% to $ 27.18 per share on Monday, down 48.9% for the year.
