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Intel CEO says CPU and GPU chips are the new oil and gas of geopolitics

Speaking with CNN, Intel CEO Pat Gelsinger says semiconductor chip supply will be more important than oil and gas for "the next 5 decades."

Intel
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In a recent interview with CNN, Intel CEO Pat Gelsinger stressed the importance of semiconductor chip supply in relation to geopolitics. According to Gelsinger, global politics will soon be dominated by the “availability, trade and investment in microchips.” Elaborating on the matter further, Gelsinger noted that the location of “oil reserves [has] defined geopolitics for the last five decades.”

Looking at the next 5 decades, this is set to shift with Gelsinger stating that, “Where the technology supply chains are, and where semiconductors are built, is more important for the next 5 decades.” In addition to this, Gelsinger stresses the need for a “geographically balanced, resilient supply chain” when it comes to the manufacturing of semiconductor chips. Especially in regards to how chip manufacturing at present is largely concentrated in Asia in countries like China and Taiwan.

Intel semiconductor chip manufacturing image as provided by Intel's official website
© Intel

To combat this, Intel shared plans last year to invest $20 billion in the construction of two new chip-making facilities in the U.S. in addition to $90 billion towards new factories in Europe. Touching on this subject Gelsinger told CNN, “If we’ve learned one thing from the COVID crisis and this multi-year journey that we’ve been on it’s we need resilience in our supply chains.”

Looking ahead, Gelsinger senses a tough economic environment “in the near term” before lamenting about the challenges of being a “CEO these days.”

Intel semiconductor chip manufacturing image as provided by Intel's official website
© Intel

Intel isn’t alone when it comes to expanding chip-making efforts, with President Joe Biden passing the CHIPS and Science Act last year that aims to invest more than $200 billion to help and encourage companies like Intel establish domestic chip-making and research in the United States.

Now that you’re caught up on the geopolitics of semiconductor chips as talked about by Intel CEO Pat Gelsinger, be sure to read through some of our previous coverage as well including Biden expanding U.S. semiconductor export limitations to more Chinese companies, and how Micron plans to invest $40 billion in US chip manufacturing with help of CHIPS Act.

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.

From The Chatty
  • reply
    January 19, 2023 10:45 AM

    Morgan Shaver posted a new article, Intel CEO says CPU and GPU chips are the new oil and gas of geopolitics

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      January 19, 2023 11:24 AM

      LOL: Oil and Gas CEOs

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      January 19, 2023 11:33 AM

      "This industry that I am in, that does the things I do, is the most important industry of all", says CEO of largest company in their industry.

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        January 19, 2023 11:53 AM

        He’s also correct. Microchips are omnipresent and required for basically everything, in every industry. You can have a huge product like a yacht that’s inoperable because you can’t get a ahold of a chip the size of a quarter.

        The supply chain is also much more complex than petroleum, requiring a huge amount of investment in knowledge and extremely specialized equipment that in many cases has no easy substitute.

        The fact that our microchip supply chain is so complex and fragile is a major risk to the national security of many countries. You absolutely would like to be in a place where chips for things like refrigerators can easily be supplied by several dozen producers, but that’s rarely the case.

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          January 19, 2023 1:08 PM

          required for basically everything, in every industry.
          lol, no. Most industry's and jobs don't need new computers, shit from 10 years ago would work just fine. Still some giant fucking companies using mainframe computing running COBOL shit from the 50s because it works.

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            January 19, 2023 1:11 PM

            not even close to true, but if we pretend it is, are all these chips just laying around? none of them need to be manufactured? there are just piles and piles of them all over the place?

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            January 19, 2023 1:11 PM

            Okay, well, you’re not right about this. The number of products with microchips in them is enormous, as is the number of industries where software and hardware are critical their operation. Literally light bulbs have microchips in them now.

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              January 19, 2023 1:22 PM

              Not only that but the pandemic proved it. Washer/Dryer randomly broke due to a chip? Sometimes you could wait a year for a replacement. Car manufacturing plumeted and sometimes stopped because they couldn't get chips and some car repairs would take months due to needing chips. The list goes on and on.

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      January 19, 2023 11:41 AM

      Relevant: https://youtu.be/k_zz3239DA0

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      January 19, 2023 1:14 PM

      Not really fair, oil and gas is more evenly distributed across the world.

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      January 19, 2023 1:23 PM

      There's a new chip fabrication plant being built in my city and people are going crazy about it. Chips are pretty omnipresent and important to modern society and will only be more and more so.

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