The Third World War could well happen with only one incentive at stake: semiconductors. The industry is going so fast and at such a level that there are political tensions, a lot of money at stake and above all the subjugation of the losing nations. Intel is very clear about it and proof of this are the interesting statements of its CEO, Patrick Gelsinger, who openly asks his government for help to fight against rival companies / countries. It is a fight between Intel vs Korea vs Taiwan In all rules.
It was at the Fortune Brainstorm Technology Conference held in California where the current CEO of Intel has been dispatched at ease and has mixed and talked about all kinds of topics, including the military. Everything we’re going to read has a very clear prior context: Samsung’s impending semiconductor manufacturing facility in Taylor, Texas, worth no less than $ 17 billion.
Intellectual property and dominance at stake, that’s what Intel fears losing inside and outside the US, but the question really is why so scared of IP? Basically because the geopolitical situation is currently very hot and China is the epicenter of everything. The fall of Evergrande and the country’s energy and currency crisis are targeting Taiwan with TSMC leading the way.
Intel, Samsung and TSMC: IP, domain and semiconductors
In the words of Pat Gelsinger himself, it is quite clear what Intel is after:
“Do we want to own the intellectual property, R&D and tax flow associated with that or do we want it to go back to Asia?”
The statements are logically addressed to the Senate chamber and to President Joe Biden himself, where the details of the so-called law are still being finalized. CHIPS for America, of which we have already spoken on several occasions.
Samsung and TSMC are going to build FABs on American soil and behind that there are not only subsidies from the government itself, but in the shadows are Taiwan and South Korea contributing huge amounts of money, but this is just a protectionist movement from the US. UU: keep your friends close, but your enemies even closer.
Well, Pat Gelsinger pokes right and left with the geopolitical situation to suggest that this movement, although legal, may not be so interesting since the Samsung plant has received 4 billion in grants and TSMC will receive 205 million to get started. Is it logical to help “the enemy”? Gelsinger is clear:
Taiwan is not a stable place. Beijing sent 27 fighter jets to Taiwan’s air defense identification zone this week. “Does that make us feel more comfortable or less?”
Intel vs Korea vs Taiwan
It is well known that China definitely wants to take over Taiwan and although the latter do not accept this fact and are fighting for their independence, the US and Japan have their nets on the small island. The tension is at all high and Taiwan can explode at any moment due to the smallest mistake, so giving government subsidies to the enemy makes Intel not go on to compete against companies, but against countries:
«How do you compete with a subsidy from 30 to 40%? Because that means we are not competing with TSMC or Samsung, we are competing with Taiwan and Korea. Subsidies in China are even more significant. ‘
Intel recently announced that it will make an investment of 20 billion in Ocotillo, Arizona for its new manufacturing plant within its IDM 2.0 strategy, and although they do not have funding at the moment they hope that the CHIPS for America law will change that, in addition to supply millions to Micron and Texas Instruments, keys in the semiconductor industry of the country of the stars and stripes.