Pat Gelsinger, Intel CEO, discusses topics including the role of semiconductors, rebuilding supply chains, materials dependence, technological gap in chip technology, and the significance of research and development in the technology industry.
Rebuilding the semiconductor industry in the US and Europe is necessary to ensure economic growth, national security, and a resilient supply chain.
The future of AI and advanced logic requirements in the semiconductor industry is promising, driven by the demand for high-performance computing and local inference capabilities.
Deep dives
The Significance of Semiconductors in the Global Economy
Semiconductors have become a vital component of the digital age, with most aspects of life becoming more digital. The importance of semiconductors in economic growth and national security has led to increased industrial policy legislation, such as the EU Chips Act and the US Chips Act. Efforts are being made to rebuild the semiconductor industry in the US and Europe, which have seen a decline in market share over the years. Although progress has been made, it takes time to establish new manufacturing facilities and ensure a balanced and resilient supply chain.
Different Categories of Semiconductors and the Demand for Advanced Logic
Semiconductors can be divided into four major categories: memory chips, specialty chips, mature chips, and leading-edge chips. The demand for leading-edge chips, driven by artificial intelligence (AI), is expected to continue growing due to the increasing need for high-performance computing. However, the long lead time for building manufacturing facilities and the unpredictability of future demand create challenges and cyclicality in the industry. Despite oversupply and undersupply concerns in certain categories, the future of AI and advanced logic requirements is promising.
The Link Between Semiconductors and AI
AI is an area of significant research and development in the semiconductor industry. High-performance accelerated computing, particularly in the field of graphics, has paved the way for AI advancements. Rather than focusing solely on big model training, the next phase of AI will involve deployment and utilization. The aim is to move AI capabilities out of big data centers and into devices, enabling local inference and reducing costs, latency, and privacy concerns. AI is expected to drive significant demand for semiconductors in the coming years.
The Importance of R&D Investment and the Role of Industry and Government
R&D investment is crucial to the semiconductor industry's progress and sustained innovation. While industry-driven R&D has become more prominent over time, long-term research conducted by governments and public sectors is essential. Rebuilding long-term research capabilities is crucial for future technological advancements. The science of AI, including the integration of reasoning, and the exploration of materials and new scientific frontiers, offer exciting opportunities for the semiconductor industry. Continued collaboration between industry and government is necessary to ensure competitiveness and technological leadership.
Intel Chief Executive Officer Pat Gelsinger talks with World Economic Forum Executive Chairman Klaus Schwab in this wide ranging conversation on technology, leading edge semiconductor production and the trends shaping the year ahead. Recorded January 17, 2024.