Intel: Asia makes too many chips

Posted on Friday, March 26 2021 @ 9:30 CET by Thomas De Maesschalck
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Earlier this week, new Intel CEO Pat Gelsinger revealed his plans to make Intel a leading global semiconductor foundry and now he continues to bang the drums. Both in the US and Europe, there are concerns among politicians that today's semiconductor supply chain is very vulnerable as most of the production is concentrated in Asia. Over the past couple of decades, manufacturing in the US and Europe largely disappeared, and now most chips are made in East-Asia.

In an interview with BBC, Gelsinger singled out this issue and called it not "palatable" that 80 percent of all supply comes from Asia. But of course, Gelsinger has the solution. He promises Intel will step in to create a more balanced supply chain.
"Having 80% of all supply in Asia simply isn't a palatable manner for the world to have its view of the most critical technology," Mr Gelsinger said.

"Every smartphone, every telemedicine, every remote worker, every remote education, every autonomous vehicle, every aspect of humanity is becoming more digital.

"And when it becomes digital, it runs on semiconductors.

"This is the heart of every aspect of human existence going forward. And the world needs a more balanced supply chain to accomplish that. We're stepping in."
Besides investing $20 billion in Arizona, Intel hints at future manufacturing capacity in a European nation. There is definitely a link here with the EU's plan to become a bigger force in the semiconductor market. Last month there was news that the European Commission wanted to lure TSMC and Samsung with subsidies. It seems Intel is also interested in these incentives to set up shop on European ground.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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