Intel CEO urges withdrawal of chip production from Asia

The United States and Europe should continue their efforts to re-manufacture chips from Asia. There is also a role for governments in this regard. Here’s what Pat Gelsinger, CEO of American chip maker Intel, said. He urged lawmakers not to “waste” the current crisis.

Governments should learn from the disruptions caused by the pandemic, and consider the national security implications of the fact that about 80 percent of production takes place in Asia, Gelsinger said in an interview with Bloomberg News. The head of the world’s largest chip maker said he was optimistic that the United States and the European Union had indicated their willingness to support factory building.

The massive shortage of chips has crippled many industries over the past year and hurt sales of many products such as cars and smartphones. As a result, attention has shifted to a lack of production outside Asia. Rising tensions with China are also pushing the United States to restore domestic production.

Executives at more than 50 US companies last month called on politicians to pass legislation that would provide $52 billion in subsidies and incentives for domestic chip production. There was also a separate bill to encourage the design and manufacture of semiconductors. But the legislation is slow to enact.

Intel itself has a complex relationship with China. The company sells processors to companies in the country, and recently suggested using a plant in the Chinese city of Chengdu to ramp up production of silicon chips. However, the Biden administration fell into this plan. According to Gelsinger, there will always be demand for Intel chips from China, among others, as long as the company continues to offer the best performing processors.