Get Rid of Pat Gelsinger Looks to Mix Chip Bias Towards Asia

The chief executive of the chip manufacturer, Pat Gelsinger, urged the need for a more "geographically balanced" processor supply and pointed out that 80% of the world's supply comes from Asia, which is not a "palatable" supply chain.

Pat Gelsinger

Intel CEO Pat Gelsinger pointed out that 80% of all current supplies are located in Asia, which is not “palatable” for “the most critical technology.” Intel hopes to transfer the global semiconductor supply, it is said that the current global semiconductor supply is too biased towards Asia.

As more and more semiconductors need to support digital transformation, the American chip manufacturer has proposed a “more balanced supply chain” requirement.

Pat Gelsinger said in an interview with the BBC: “Every smartphone, every telemedicine, every remote worker, every remote education, every self-driving car, every aspect of human beings is becoming more and more. Digitization. When digitized, it runs on semiconductors. “It is the core of all aspects of human survival, and the world needs a more balanced supply chain to achieve this goal. We are intervening.”

Pat Gelsinger
Pat Gelsinger

Pat Gelsinger added that governments such as the European Commission have discussed the need to put the supply chain on their soil and establish a “capacity balance.”

This is also essential to ensure a secure supply chain for defense purposes and to determine the source of intellectual property rights. He said: “This is indeed a proof of the balance of the world.”

According to Gartner’s data, Intel is still the world’s leading semiconductor supplier in terms of revenue, with a market share of 15.6% and revenue of US$70.24 billion. South Korea’s Samsung Electronics and SK Hynix ranked second and third with 12.5% ​​and 5.6% market shares, respectively.

Gartner said that strong sales of 5G smartphones have promoted market growth and helped chip makers such as US chipmaker Qualcomm and Taiwan’s MediaTek achieve strong growth in 2020.

The Ministry of Trade of South Korea also predicted in January that South Korea’s semiconductor exports this year will increase by 10.2% year-on-year to reach the expected 109.3 billion US dollars.

If it is achieved, this will be the second-highest ever. The ministry said that last year’s chip exports reached 99.3 billion U.S. dollars, which was mainly driven by strong demand for servers and laptops, as the company moved to remote areas during the global pandemic.

Seoul further predicts that 5G market growth and remote work practices will continue, and drive demand for semiconductors in 2021.

Intel Core

Pat Gelsinger said in an interview that describing manufacturing as a “capacity game”, Intel needs to build foundries for itself and others to maintain its leading position and fill the gaps in a world that needs more chips in the digital process. . He added that Intel will use Samsung and TSMC (Taiwan Semiconductor Manufacturing Company) for some of its own products.

Pat Gelsinger pointed out that the chip market is worth 100 billion U.S. dollars and is growing, and demand exceeds supply. He reiterated the need for “a more balanced supply geographically,” he said: “Today, Asia has serious prejudices. As we have seen, after some chaos and challenges, the world needs to supply in a more balanced way. The United States and Europe. This is the right choice for global supply chain requirements, whether for commercial use or government and defense use.”

When Pat Gelsinger took over as CEO in January, he said that Intel’s goal is to produce most of its products internally by 2023. This week, he announced plans to invest US$20 billion in two new factories in Arizona, USA, creating 3,000 jobs for them.

In the domestic market, the focus is on the “PDK model” so that the chip design can be easily transferred from its factory to an external site.

Intel also announced a US$475 million investment in assembly and testing facilities in Vietnam in January, bringing the company’s total investment in the region to US$1.5 billion.

The capital injection will be used to “enhance” Intel’s 5G product line, the production of Core processors that integrate its hybrid technology, and the 10th generation of Core chips.

The plant is located in the Saigon Hi-Tech Park in Ho Chi Minh City and is Intel’s largest assembly and testing base in the world. The American chip manufacturer also has similar plants in China and Malaysia in the region.

Source: Intel CEO 

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