Intel CEO: "US Controls on Semiconductor Exports to China Geopolitically Inevitable"

Pat Gelsinger, Intel Chief Executive Officer (CEO)
Photo by Reuters

[Asia Economy Reporter Jeong Hyunjin] Pat Gelsinger, CEO of Intel, a leading American semiconductor company, interpreted the Biden administration's semiconductor export controls on China as a geopolitically inevitable measure to maintain leadership in the technological hegemony competition with China.

On the 24th (local time), CEO Gelsinger attended the Wall Street Journal (WSJ) annual Technology Live Conference and said that the U.S. semiconductor export control measures on China are part of the necessary transition in the semiconductor supply chain. "In my view, this is geopolitically inevitable. This is why supply chain rebalancing is important," he said.

CEO Gelsinger is a strong supporter of the Biden administration's semiconductor support policies. He actively voiced his opinions for the passage of the CHIPS Act by the U.S. Congress in July. In June, he postponed the groundbreaking ceremony for Intel's new plant in Ohio, citing the Congress's failure to pass the bill. The groundbreaking ceremony was held again in September, three months later.

Since becoming Intel's CEO in February last year, Gelsinger announced plans to re-enter the foundry (semiconductor contract manufacturing) business and invest in manufacturing facilities in Ohio and Germany. He emphasized, "If the defining geopolitical question for the past 50 years was where the oil reserves are, in the next 50 years, where fabs (semiconductor manufacturing facilities) are located will become even more important."

He hopes that through the active efforts of Western countries to secure semiconductor production, Asia's share in semiconductor manufacturing will decrease from the current 80% to 50% by 2030, while the U.S. will increase to 30% and Europe to 20%. He added, "(If this happens) I would be very pleased."

Despite recent assessments of a 'cold wave' with a significant drop in semiconductor demand, CEO Gelsinger views the long-term outlook as strong. He said the semiconductor market size will expand from the current $600 billion to $1.1 trillion by 2030, and that investment decisions for expanding manufacturing facilities have been well made.

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