[News Inside] "We Will Regain Semiconductor Dominance" A Challenge to Samsung Electronics... From Joining at 18 to Becoming CEO

Pat Gelsinger Intel CEO

▲Pat Gelsinger Intel CEO [Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Intel, the American semiconductor company that lost its No. 1 position in 2016 to Taiwan's TSMC and South Korea's Samsung Electronics, is tightening its grip to regain global semiconductor dominance. Pat Gelsinger, Intel's Chief Executive Officer (CEO), has declared that mergers and acquisitions (M&A) will be actively utilized as a key strategy for this goal. Can CEO Gelsinger restore Intel's former glory?

On the 19th (local time), in an interview with The Wall Street Journal (WSJ), Gelsinger stated, "There will be consolidation in the semiconductor industry," adding, "Intel will be the main agent of this consolidation."

CEO Gelsinger joined Intel in 1979 at the age of 18 and became the 8th CEO in February this year. With over 30 years at Intel and more than 40 years of experience in the field, Gelsinger expressed his determination to restore Intel's former reputation upon taking office, saying, "Intel's core DNA is ultimately to be a future technology leader," and "Intel's best days are ahead of us." He has effectively stepped in as the savior of Intel, which has lost momentum since 2016.

[Image source=Reuters Yonhap News]

Immediately after becoming CEO, Gelsinger announced the 'Integrated Device Manufacturer (IDM) 2.0' strategy in March, which includes plans to enter the foundry (semiconductor contract manufacturing) market. The core of the strategy involves investing $20 billion to build two semiconductor factories in Arizona and collaborating on research and development with IBM. However, he believes that M&A is essential for Intel to make a quantum leap.

Recent reports that Intel is pursuing the acquisition of GlobalFoundries, the world's 4th largest foundry, are in line with this strategy. Although the acquisition of GlobalFoundries ultimately fell through, CEO Gelsinger mentioned that "Intel is an active acquirer," indicating that the company will continue to pursue M&A aggressively in the future.

Why is CEO Gelsinger focusing on M&A? Industry experts point to changes in the global semiconductor industry as the answer. This is due to the capital-intensive nature of the semiconductor industry. Large-scale investments must precede to secure market leadership. TSMC, the No. 1 foundry company, has formed a close relationship by making large investments and establishing a new factory in Japan, reflecting this background. Additionally, the sharp increase in costs, such as more than $10 billion required to build cutting-edge semiconductor chip factories, is cited as a major factor. Gelsinger has noted, "Ten to fifteen years ago, there were about ten leading companies producing cutting-edge semiconductor chips, but now only three remain." These are Samsung Electronics, TSMC, and Intel.

[Image source=Reuters Yonhap News]

CEO Gelsinger is actively engaging in political efforts by leveraging the global semiconductor shortage, in addition to focusing on M&A and large-scale technology investments. He is persuading the United States and the European Union (EU) to "correct the playing field tilted toward Asia." His meetings with European leaders such as French President Emmanuel Macron and German Chancellor Angela Merkel from late June to early July are interpreted as part of these efforts.

Meanwhile, after joining Intel in 1979, CEO Gelsinger became Intel's first Chief Technology Officer (CTO) and served as Senior Vice President and General Manager of the Digital Enterprise Group. He led the development of key industry technologies such as USB and Wi-Fi. He also played a pivotal role in the development of Intel Core and Xeon processor product lines, enabling Intel to supply outstanding microprocessors.

Gelsinger graduated from Lincoln Technical Institute, earned a bachelor's degree from Santa Clara University, and a master's degree from Stanford University. He holds eight patents in VLSI design, computer architecture, and communications, and serves as an IEEE Fellow and a member of the National Security Telecommunications Advisory Committee.

This content was produced with the assistance of AI translation services.