Intel CEO Calls New US Restrictions on Chip Exports To China Inevitable (wsj.com) 9
Intel Chief Executive Pat Gelsinger said that recently imposed U.S. restrictions on semiconductor-industry exports to China were inevitable as America seeks to maintain technological leadership in competition with China. From a report: Speaking at The Wall Street Journal's annual Tech Live conference, Mr. Gelsinger said the restrictions, which require chip companies to obtain a license to export certain advanced artificial-intelligence and supercomputing chips as well as equipment used in advanced manufacturing, are part of a necessary shift of chip supply chains. "I viewed this geopolitically as inevitable," Mr. Gelsinger said. "And that's why the rebalancing of supply chains is so critical." His comments Monday followed high-profile public lobbying of Congress to pass the bipartisan Chips and Science Act, which extends nearly $53 billion in subsidies for research and development and to build or expand fabs in the U.S., in July. Mr. Gelsinger was a leading advocate for the legislation.
Mr. Gelsinger has embarked on a massive expansion of chip plants, referred to as fabs. The company has announced plans to erect new facilities in Ohio, Germany and elsewhere since Mr. Gelsinger took over last year at a combined cost potentially topping $100 billion. "Where the oil reserves are defined geopolitics for the last five decades. Where the fabs are for the next five decades is more important," Mr. Gelsinger said Monday. Mr. Gelsinger said the ambition for efforts to boost domestic chip manufacturing in Western countries was to shift from about 80% in Asia to about 50% by the end of the decade, with the U.S. taking 30% and Europe the remaining 20%. "We would all feel so good" if that were to happen, he said.
Mr. Gelsinger has embarked on a massive expansion of chip plants, referred to as fabs. The company has announced plans to erect new facilities in Ohio, Germany and elsewhere since Mr. Gelsinger took over last year at a combined cost potentially topping $100 billion. "Where the oil reserves are defined geopolitics for the last five decades. Where the fabs are for the next five decades is more important," Mr. Gelsinger said Monday. Mr. Gelsinger said the ambition for efforts to boost domestic chip manufacturing in Western countries was to shift from about 80% in Asia to about 50% by the end of the decade, with the U.S. taking 30% and Europe the remaining 20%. "We would all feel so good" if that were to happen, he said.
Let's screw the rest of the world (Score:1)
Look at the cheapest Intel CPU above $300, unobtainium for 7 out 8 billion people. They can only rely on cheap electronics from China.
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Look at the cheapest Intel CPU above $300, unobtainium for 7 out 8 billion people. They can only rely on cheap electronics from China.
You literally mean us to ignore the ones that are below $300? I just checked and I can get processors for £50 which is $50 in your money and already includes sales taxes ... (£ isn't quite what it used to be for some reason). In fact I can get a used processor which is likely fine for most of my needs for £12. Why would I ignore the fact I can get much cheaper intel processors when they probably do what I need fine?
In other news... (Score:2)
https://www.bloomberg.com/news... [bloomberg.com]
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It MAY boost revenue. It's a HUGE capital expense. It's anyone's guess if their margins would be higher or lower compared to relying on fabs in Asia. What is more certain is that this is likely to result in a more reliable/secure supply chain for Intel and Intel's customers.
Best,
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It used to be that a lot of the manufacturing fled to Asia because labor was cheaper. Fabs are so filled with automation that humans are hardly even permitted to see the wafers while they are in process, let alone handle them. In tha
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lot of the manufacturing happens in places like Taiwan and South Korea. China mostly produces lower end chips and Intel does not do anything in that space.
So the end result will not have much effect if any on Intel in terms of markets.
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Replying to myself as forgot a point: In fact the sanctions on selling high end chips to China is likely a net negative to Intel at least in short and medium term as they have sold quite a lot of CPUs there.
John Mearsheimer predicted this (Score:2)