Intel CEO: Taiwan's Place in Tech Industry Is 'Precarious'

“The world needs geographically balanced, resilient supply chains.”

His remarks reflect newworries about whether China will attempt to reclaim Taiwanas its own territory.

Taiwan is home to Taiwan Semiconductor Manufacturing Co. (TSMC), the global leader in the semiconductor industry.

Intel, of course, stands to benefit from any shift in chip manufacturing away from Taiwan.

It’s pledged to build chips for other companies, not just itself.

Intel also relies on TSMC, though.

Processors have become an essential component in everything from cars and toys to dishwashers and weapons systems.

The shortage was severe: automakers had to shut down production lines and ship vehicles without electronic components.

Asia’s share would drop from about 80% to about 50%.

“These things are long term,” Gelsigner said.

But he believes the process is now underway.

“Where the oil reserves are defined geopolitics for the last five decades,” Gelsinger said.

“Where the fabs are for the next five decades is more important.”