Intel ought to be careful of becoming a nationwide champion thumbnail

DATA MAY be the brand-new oil, but it is semiconductors– the brains of the information economy– that nowadays vie with hydrocarbons as business world’s most significant financial flashpoint. Like crude, the $500 bn computer-chip market is vital to industrial economies. It is regularly buffeted, as are oilmen, by excesses of supply and demand. And it is at the vortex of extreme geopolitical competitions. Its primary wellspring, however, is not in the Persian Gulf, however on an island about 175 km (110 miles) across the water from China. What is more, the Communist Party in Beijing declares the island in concern, Taiwan, as part of its territory. That puts the semiconductor industry at the heart of the Sino-American power struggle– an uniquely uneasy location to be..
It is in this context that the recent $20 bn dedication by Intel, America’s biggest chipmaker, to revitalise semiconductor production in America need to be seen. With some fanfare, its new manager, Pat Gelsinger, is positioning a flag on his home turf, hoping to help reclaim the dynamism that the nation which created semiconductors has actually lost to chip factories in Taiwan and South Korea.

By Admin