The former Intel CEO told Japanese journalists about the role of AI in the semiconductor industry, investments, new duties, and more.
During his visit to Japan and interview Nikkei Asia Pat Gelsinger once again denied the idea that Intel should have abandoned the capital-intensive manufacturing business and focused on design because of its lagging behind TSMC. Helsinger is adamant: «Semiconductor manufacturing and lithography fab — is still the right thing to do».
«If I were starting over, the strategy would be the same», — he said.
This statement coincided with unofficial information about the decision of the current chairman of Intel, Lip-Bu Tan not to offer customers the 18A processand focus on the next 14A process. So, it seems that the lag with TSMC is still relevant and has a significant impact on the business.
The former Intel CEO criticized the market’s attitude toward long-term projects, including the increased focus on quarterly results. According to him, it is extremely difficult to build a five-year development plan that would be «measured every 90 days».
«I think many projects require long-term, large, and patient capital. If the United States cannot find ways to finance long-term patient capital, manufacturers will never return to the United States».
Gelsinger also mentioned the new US export duties. He says that it is no coincidence that the industry’s supply chains moved to Asia at one point. This happened because of «extraordinary government subsidies» in Taiwan, South Korea, and China. He emphasizes the need for a balanced policy on this issue.
«The policy should be simple so that it can be implemented. It should be in line with the industrial goals you have and it should be supported by your allies. If you change your tariff policy, it will take you two to three years to rebuild your supply chains to comply with the policy».
Pat Gelsinger admitted that he, like many, underestimated the impact of artificial intelligence on the industry. According to him, a strong investment in AI would have limited Intel’s finances. He says that «spent more time trying to get more capital on»’s balance sheet earlier. Given the high power consumption of AI infrastructure, Gelsinger now sees companies working on energy-saving technologies as promising.
«If you look at today’s artificial intelligence chips, their computing performance continues to grow, but the energy efficiency of these chips hasn’t changed in three generations,» Gelsinger says.
Staff reductions that recently befell Intel Foundryand a possible decision on the 18A process indicate not very good times for the company modern customs policy The US, together with some other legislative decisions in recent years. However, it is hard to say for sure what state the company would be in if it had timely «underestimated» the development of AI.
Spelling error report
The following text will be sent to our editors: