Intel CEO Said Semiconductor Supply Will Be More Important THAN Oil

Intel CEO Pat Gelsinger (PHOTO: dock. Intel)

JAKARTA - Intel CEO Pat Gelsinger said semiconductors would be a more important factor compared to oil in global geopolitical conditions in the next five years.

Gelsinger said the location of oil reserves had determined geopolitical over the past 50 years, but there would be more important factors over the next five years.

"Where the technology supply chain is located, and where semiconductors are made," Gelsinger said during an interview with CNN International journalist Julia Chatterley at the World Economic Forum, in Davos, Switzerland.

Semiconductor shortages due to the COVID-19 pandemic have an impact on almost every product with chips in it, including cars. This caused the United States (US) to pass US$280 billion equivalent to Rp4.233 trillion through the CHIPS and Science Act, and US$52 billion will be used for subsidies for chipmakers.

"If we have learned one thing from the Covid crisis and the years we've been through, we need resilience in our supply chain," Gelsinger said.

Gelsinger added that his company is now waiting for funding from the CHIPS and Science Act to be disbursed, which he hopes will happen this year.

"I'm investing, please show me the money. Because we assume they will help us make this massive investment," Gelsinger said.

In addition to the largest factories in Oregon, New Mexico and Arizona under expansion, Intel is building new facilities in Ohio while expanding its international operations in Israel, Ireland, Malaysia, Germany, and Italy.

Last year, the company revealed it invested US$20 billion equivalent to Rp300 trillion in two US factories and up to US$90 billion equivalent to Rp1,350 trillion in new European factories, aiming to reaffirm its position as a semiconductor industry leader.

Gelsinger said this investment not only benefits Intel, but also is also important for globalization of the most important resources for the world's future.

"We need a balanced and geographically resilient supply chain," explained Gelsinger.

The announcement also comes amid concerns about chip manufacturing concentrations in Asia, particularly China and Taiwan, during the COVID-19 pandemic and as geopolitical tensions escalate.

The problems in chip supply chains in recent years have caused shortages and delays in delivery of everything from desktop computers and iPhones to cars.