Intel CEO Pat Gelsinger recently stated in an interview with CNN that semiconductor chip supply chains will have a greater influence on geopolitics than oil supply-chains over the next 50 years. This is due to the increasing digitization of modern civilization, with most modern conveniences being “chipped” and connected in some form. This puts the chip-producing nations, or entities producing/supplying the chips, at a distinct geopolitical advantage, similar to the oil-producing ones today.
The global semiconductor supply chains buckled around 2020-onward, resulting in disruptions to a multitude of other industries, including automobiles, construction, remote-work, consumer electronics, and much more. Unlike oil, which is a geographically constrained natural resource, chips can be manufactured almost anywhere, dictated only by geopolitical, trade, and IP barriers.
Gelsinger is advocating for a much wider geographic spread of chip-production, so the supply-chains become more resilient to disruptions due to unforeseen events. He is also advocating for semiconductor manufacturing on U.S. soil to not only meet local demand, but also contribute to global supply-chain resilience. The CHIPS Act passed by U.S. Congress in 2022 will oversee more than $200 billion in public investments on semiconductor manufacturing and tech-research in the U.S.
The semiconductor chip supply chains are set to have a greater influence on geopolitics than oil supply-chains over the next 50 years due to the increasing digitization of modern civilization. This puts the chip-producing nations, or entities producing/supplying the chips, at a distinct geopolitical advantage. To ensure that the supply-chains become more resilient to disruptions due to unforeseen events, Gelsinger is advocating for a much wider geographic spread of chip-production. The CHIPS Act passed by U.S. Congress in 2022 will oversee more than $200 billion in public investments on semiconductor manufacturing and tech-research in the U.S. to help meet local demand and contribute to global supply-chain resilience.
