Intel CEO Pat Gelsinger called Monday for the U.S. to spend billions of dollars over the next few years as part of a "moonshot" designed to regain lost ground in semiconductor manufacturing. The goal, he said, is to see the U.S. again account for a third of global output, up from about 12% today.
Why it matters: Investments made now will take several years to bear fruit, so they won't do much to ease the current semiconductor shortage, but they're vital to America's long-term economic future and national security, Gelsinger told Axios on Monday.
Driving the news: The White House met with tech leaders in a virtual summit on Monday discussing the need for investment in chip manufacturing.
- With demand for broad categories of chips exceeding supply, makers of everything from cars to computers and networking gear are having to slow factories and cut output. Automakers have been hit especially hard.
- At the very leading edge, the vast majority of chip production today is done in Taiwan, an island that remains imperiled by China's long-standing claims.
- "I would argue the most important building block for our economic livelihood and every aspect of human life is now increasingly not in our control," Gelsinger told Axios in an interview after the White House meeting.
Between the lines: Congress voiced support for investing $50 billion in chipmaking efforts as part of a recent defense spending authorization bill, but it did not actually commit the funds....
- The global COVID-19 pandemic has accelerated digital shifts in work, education and health care, which Gelsinger said only increases the need for the U.S. to maintain strength in chipmaking.