Intel CEO Pat Gelsinger details how $8.5B from the Chips and Science Act will go towards four projects including an Ohio plant on ‘The Claman Countdown.’
Intel CEO Pat Gelsinger is sharing the lead technology company’s excitement over billions of dollars in federal grants that will help the U.S. return to chip production prominence.
“This is a big investment to be a leading technology supplier for something so critical to our nation, the economy and our security. We’re excited,” Gelsinger said in a wide-ranging interview airing on “The Claman Countdown” Wednesday and Thursday. “Clearly, we are on a journey to rebuild our leadership position.”
Stemming from the CHIPS and Science Act, the Biden-Harris administration announced Wednesday it would award Intel up to $8.5 billion in funding and $11 billion in federal loans for the company’s push into artificial intelligence (A.I.), efforts to move the semiconductor supply chain out of Asia onto U.S. soil and updates to their Israel office.
“So it’s across the four projects that we have here,” Gelsinger explained. “And I just always like to remind people these are some of the largest construction projects on Earth, building the smallest things that have ever been built on Earth.”
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The CEO noted it may take some time to expand upon their American-based supply chains in states like Arizona, New Mexico, Oregon and Ohio, but that it ultimately satisfies economic and national security interests.
Intel CEO Pat Gelsinger spoke with FOX Business’ Liz Claman about plans for the billions of dollars awarded to the tech giant by the Biden administration. (Getty Images)
“It took 30 years, three decades of drifting of these supply chains to Asia. And as excited as I am about the CHIPS Act, it’s three, four years of effort to restore it, Gelsinger told FOX Business’ Liz Claman. “It’s going to take us a while to rebuild them.”
Intel CEO Pat Gelsinger provides insight into the importance of boosting semiconductor chip production in the United States to help take on digital power against China on ‘Maria Bartiromo’s Wall Street.’
“We’re trying to aim between the U.S. and Europe to get to 50% by the end of the decade, so that we truly have built resilient, sustainable and trusted supply chains for the future,” he continued. “And I do believe that we’re going to need the chips, too. We don’t fix [this] in three or four years. It took us three decades to lose this industry. But I certainly believe by 2030 and beyond, we’re going to be a course that the industry will have been rebuilt… and the world’s most advanced chips and A.I. capabilities will be right here in America.”
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Cody Acree still maintains a buy rating with a price target of $62 per share on ‘The Claman Countdown.’
While Intel has gained notoriety for its product success with PCs, networking, computer components and cell phones, company focus has pivoted slightly towards the “supercharger” of the tech sector right now.
“A.I. chips… we expect we’ll be building many of those A.I. chips, not just Intel’s chips, but for industry participants as well. And for that, they need the most advanced technology to build the most advanced A.I.,” Gelsinger said. “And that’s exactly what we’re going to do at these facilities and across the nation.”
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