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Intel warns of semiconductor supply dependency

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Intel CEO, Pat Gelsinger, stressed the importance of reviving the US semiconductor industry. He further warned that relying on semiconductors imports from Korea and Taiwan could issues. According to him, semiconductors are directly related to national security and could raise the risk of geopolitical conflict.

pat gelsinger intel ceo

In an interview published on the US internet media Axios the 18th (local time), Gelsinger discussed semiconductor imports from Korea and Taiwan. “If the world depends on one region, it becomes politically unstable,” he said. “This approach is also impractical,” Gelsinger concluded.

“Even if the location of the oil field is divinely determined, the location of the facility can be determined by humans,” he said.

He insisted: “The price in the US should not be 30-40% higher than in Asia. We need support to be able to make bigger and faster semiconductors on US soil by closing the (price) gap with Asia”. He added: “This year we will invest $20 billion. We are using cash to build manufacturing plants and research institutes. But we are looking for ways to get government support and subsidies.”

Intel, which was dominant in the semiconductor industry in the past, has recently fallen behind Korea and Taiwan. As of June, Intel predicted that the semiconductor industry would continue to boom over the next ten years. The company recently announced plans to build more large-scale semiconductor plants in the U.S. or Europe.

Joe Biden’s administration has also been holding meetings with industry leaders to address the issue of semiconductor supply and demand. Since the global Covid-19 pandemic began, global supplies of semiconductors have become scarce.

U.S. large semiconductors investment bill to pass.

The U.S. Senate has passed a bill to invest $52 billion in the semiconductor industry, but the House of Representatives has yet to rule it. According to Axios, Intel support plan is just the beginning of catching up with Taiwan and Korea in semiconductor production technology in the years to come. “Similar support will be needed in the second and third rounds to fully realise these ambitious plans,” Gelsinger added.

For MetaNews.

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Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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