Intel CEO Says China Chip Export Curbs Were Inevitable

choi

Tim Higgins and Asa Fitch, Intel CEO Says China Chip Export Curbs Were Inevitable. Wall Street Journal, Oct 25, 2022.
https://www.wsj.com/articles/int ... vitable-11666651380

Note:
(a) " '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."

I do not know whether it is true. He might have said that to make his company -- and by extension, the chip industry -- more important than it will be.
(b) "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 US taking 30% and Europe the remaining 20%."

I do not know about US (but Mr Morris Chang of TSMC) has repeatedly said that there are not enough talents to man the fabs in US), but the goal for Europe is impossible to achieve. Currently, Europe is not in the leading edges of logic or memory chips, besides small market shares in either.
(c) "The company produces memory chips at a plant in northeast China, although it is transferring those operations to South Korea's SK Hynix Inc."

Intel Sells SSD Business and Dalian Facility to SK Hynix. Intel, Dec 29, 2021,
https://www.intel.com/content/ww ... ility-sk-hynix.html
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LAGUNA BEACH, Calif. — Intel Corp Chief Executive Pat Gelsinger said that recently imposed US restrictions on semiconductor-industry exports to China were inevitable as America seeks to maintain technological leadership in competition with China.

Speaking at The Wall Street Journal's annual Tech Live conference, 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,” Gelsinger said. “And that's why the rebalancing of supply chains is so critical."

His comments 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 US, 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 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 [Oct 24, 2022].

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 US taking 30% and Europe the remaining 20%. "We would all feel so good" if that were to happen, he said.

Intel on Monday also launched an alliance to support manufacturing of cutting-edge chips in the US for national-security-sensitive applications. As the US rivalry with China has intensified in recent years, the US government and defense industry have placed growing emphasis on having advanced chips made on US soil.

Mr Gelsinger's support comes despite Intel's large involvement in China, both through customers and manufacturing operations. The company produces memory chips at a plant in northeast China, although it is transferring those operations to South Korea's SK Hynix Inc. Its sales to China last year topped $21 billion, although many Chinese electronics manufacturers that buy Intel's chips sell their end products in other countries.

While the chip industry is showing signs of shakiness after a boom at the start of the pandemic, Mr Gelsinger justified his spending on manufacturing growth by pointing to a strong long-term outlo0ok. He expects global revenue across the chip industry to nearly double from about $600 billion now to $1.1 trillion at the end of the decade.