In an interview with CBS’s “60 Minutes” that aired Sunday night, chief executive Pat Gelsinger blamed part of the blame for the current global chip shortage on the fact that 75% of global semiconductor manufacturing takes place in Asia. .
Gelsinger repeated his prediction that it would take “a few years” for chip production to meet demand, and said Intel was looking to build more of its chips in the United States.
“This is a big, critical industry and we want more of it on American soil: the jobs we want in America, control of our long-term technological future,” he said.
Journalist Lesley Stahl pointed out that Intel has spent more on share buybacks than research and development in recent years, but Gelsinger, who became CEO earlier this year, said that would change.
“We won’t be as focused on buyouts in the future as we have been in the past,” he said. “And this was reviewed as part of my entry into the company, agreed with the board of directors.”
Intel lobbied the Biden administration to help revive domestic chipmaking through incentive programs, and the White House offered $ 50 billion to help the industry as part of its plan to $ 2 trillion infrastructure.
In March, Gelsinger announced plans for a $ 20 billion expansion of Intel’s Arizona chip manufacturing plant, and said Intel would not only start manufacturing the majority of its products in-house, but that it would also increase its use of third-party manufacturers and rental. on some of his fabs.
Intel shares INTC,
are up 15% year-to-date, compared to the S&P 500’s SPX,
11% gain this year.