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[winjer]

Intel CEO Pat Gelsinger says semiconductors will become more important than oil in geopolitics

Speaking to CNN's Julia Chatterley at the World Economic Forum in Davos, Gelsinger noted that the location of oil reserves has defined geopolitics for the last 50...

www.techspot.com

Speaking to CNN's Julia Chatterley at the World Economic Forum in Davos, Gelsinger noted that the location of oil reserves has defined geopolitics for the last 50 years. But there will be a more important factor over the next half a century: "Where the technology supply chains are, and where semiconductors are built," the CEO explained.

In addition to its fab sites in Oregon, New Mexico, and Arizona (which it is expanding), Intel is building new facilities in Ohio while extending its international operations in Israel, Ireland, Malaysia, Germany, and Italy. The company said it is investing $20 billion in two US fabs and up to $90 billion in new European factories. Gelsinger says this investment benefits not just Intel, but is also essential for the "globalization of the most critical resource to the future of the world."

"We need this geographically balanced, resilient supply chain," he said.

The semiconductor shortage brought about by the pandemic impacted virtually every product with a chip in it, including vehicles. It led to the US passing the $280 billion Chips and Science Act, $52 billion of which will go toward subsidies for chip makers. "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," Gelsinger said.

The Intel CEO said his company and others are now waiting for the funds from the CHIPS Act to be dispersed, something he expects to happen this year. "I'm investing, please show up with the money. Because we're assuming they'll help us make these massive investments."

Another factor behind the push to diversify the semiconductor supply chain is Taiwan. Exports of IC chips from the country, which supplies around 50% of the world market, rose 18.4% last year. Gelsinger previously warned of the dangers that come from relying on the island nation in light of China's aggressive moves. "Taiwan is not a stable place," he said in 2021. "Beijing sent 27 warplanes to Taiwan's air defense identification zone […] Does that make you feel more comfortable or less?"

Adding to those concerns are the words of Chen Wenling, chief economist at the government-run China Center for International Economic Exchanges, whom last year said China must seize TSMC if the US imposes "destructive sanctions" on China—this was before the US imposed even tighter chip-related sanctions on the country. TSMC's chairman has since said nobody can control the company by force, while Taiwan insisted there was no need to destroy TSMC facilities in the event of a Chinese invasion.

Considering the importance of chip making for consumer products, industrial production and even modern weapon systems, it's no wonder that Gelsinger can claim chips will be so important.
But unlike oil, it's not dependent on geography, so any country can create an industry around it, as long it can create all the tech necessary. But on the other hand, it's much harder to create a Fab, than to dig a hole on the ground and pump oil.

 

[ClanOfNone]

Oil is a finite resource, and there are already viable alternatives to it, with more sure to come. Oil will be around for a long time, especially in poorer less developed countries, but the writing is on the wall.
Meanwhile, damn near every piece of modern tech require Semiconductors.

Dude is right.

 

[UnNamed]

But unlike oil, it's not dependent on geography,

Don't know if rareearth elements are really rare, but most of them are in China.
UE is developing is own cpu, so this is an important subject in the future.

 

[winjer]

Don't know if rareearth elements are really rare, but most of them are in China.
UE is developing is own cpu, so this is an important subject in the future.

No, they are not that rare.
And although China has a lot of them, they are not the only one's having it. For example, the USA has a lot of them as well, though less than China.
But in the last couple of decades, most US mines were closed because of competition from Chinese extraction, as these don't have to follow environmental laws and work laws.
So US reserves are almost untouched in the last couple of decades. While China is chipping away at theirs.
Also, recently Sweden found the biggest rare earth mine in the whole Europe. It's small compared to what China has, but it's something.

BTW, there is another resource that is very important for chip manufacturing, that is in steep decline, but few people talk about it: sand.
And before anyone asks, desert sand is not very good for creating those silicon ingots used in wafer production.

 

[AJUMP23]

Protecting semiconductor production and research is a huge strategic issue and is one of the reasons the west wants to protect Tiawan.

 

[Lunarorbit]

Seems like a true statement to me. Glad Biden is working on semiconductor manufacturing here cause I was reading it takes awhile to get those up and running. Our friends in Taiwan cant be the only game in town for us

 

[GymWolf]

So i just need to buy shares of the bigger semiconductors maker company to get rich?

 

[EverydayBeast]

https://en.m.wikipedia.org/wiki/Semiconductor

 

[MaestroMike]

Don't know if rareearth elements are really rare, but most of them are in China.
UE is developing is own cpu, so this is an important subject in the future.

i think i read rare earth elements aren't actually rare and can be found in many places they're just hard to extract

Don't Panic about Rare Earth Elements

The materials used in iPhones and Tesla cars need not become a long-term casualty of a U.S.-China trade war

www.scientificamerican.com

What’s So Rare About Rare Earth Elements?

For mining and REE exploration, you should use portable x-ray fluorescence (PXRF) analyzer, perform sample preparation, and choose the correct excitation.

www.thermofisher.com

 

[ÆMNE22A!C]

Just had a thought.
(Lie) Maybe war's intention is gaining land that contains valuable resources.

 

[Grildon Tundy]

So...we should all invest in semiconductor raw materials and companies that own the production plants?

 

[ÆMNE22A!C]

So...we should all invest in semiconductor raw materials and companies that own the production plants?

Invest in some above sea level acres to build a self sustainable house on.

Or buy knack 2, again.

 

[ÆMNE22A!C]

So...we should all invest in semiconductor raw materials and companies that own the production plants?

Wont do much when the power grid is decided to be taken down for example. Meh drunk talk.

 

[8bitpill]

Let the Shiny Bot Boys Ride into Cyberspace Valhalla in the coming Geo Wars.

 

[ÆMNE22A!C]

It's a big club and you're not invited.

- George Carlin


That gif is giving me epilepsy