Pat Gelsinger, former CEO of Intel, emphasized the significance of strengthening cooperation with the electronic ecosystems of Taiwan and Japan in an exclusive interview with Nikkei Asia News. He stated that such collaboration is crucial for the development of next-generation technologies, including computing, artificial intelligence, robotics, and other advanced technologies.
Gelsinger visited Taiwan accompanied by seven investment portfolio companies under Playground Global, a California-based venture capital firm where he currently serves as a general partner.
“I truly believe that Taiwan and Japan are the two most distinctive countries in Asia when it comes to technology,” Gelsinger remarked. “We need to deepen cooperation in core capabilities in Asia… If I only had two plane tickets, I would not hesitate to choose these two destinations.”
Playground Global manages around 1.2 billion US dollars in assets and focuses on investing in “deep technology,” such as next-generation computing, automation, and energy technologies, to address some of the world’s most challenging engineering problems.
Gelsinger pointed out that the gap between the world centered around Beijing and the world centered around the United States is widening rather than narrowing.
He highlighted Japan’s access to crucial chemicals, materials, and equipment required for semiconductor manufacturing, with key suppliers including JSR, a world-leading photoresist provider, and Tokyo Electron, one of the top semiconductor equipment manufacturers globally.
Regarding Taiwan, Gelsinger mentioned its advantage of having a comprehensive ecosystem. Taiwan is home to not only TSMC but also major chip developers like GUC, Alchip, and MediaTek, along with numerous chip packaging and electronic product manufacturers. These advantages lay a crucial foundation for any enterprise dedicated to constructing truly advanced hardware and manufacturing technologies.
While acknowledging Silicon Valley’s innovation capabilities, Gelsinger noted that Silicon Valley has not engaged in actual production manufacturing for a long time. As a veteran in the chip and tech industry, he finds it exciting to witness the United States rebuilding advanced semiconductor and manufacturing capabilities.
“The current position of Taiwan in the supply chain is not surprising. It started this work 40 years ago… because Taiwan Semiconductor Manufacturing Company (TSMC) is here, followed by packaging companies, subcontractors, design firms, and intellectual property providers,” Gelsinger said. “The emergence of similar industries in the United States is encouraging, but sustaining resilient supply chains requires continuous policies and investments.”
“This will take decades, not just a few years,” he added.
Gelsinger expressed that he is not very concerned about cost differentials in US chip manufacturing. He believes that the largest expense in advanced factories – ASML’s state-of-the-art extreme ultraviolet (EUV) lithography machines – remains the same in both the United States and Taiwan. Moreover, the increasing level of automation will gradually offset the differences in labor costs. He also pointed out that with a population of 340 million, the shortage of engineers and technical personnel will not be the primary barrier to the revival of US chip manufacturing.
Intel and TSMC both operate advanced semiconductor factories in Arizona, a vital hub in the US chip industry revolution. In October of this year, Intel announced the commencement of producing its most advanced 18A process technology chips in Fab 52 in Chandler, Arizona, marking a significant milestone in the US regaining a leading position in manufacturing and establishing a flexible semiconductor supply chain.
Samsung Electronics’ major base for US chip manufacturing is located in Texas, where Foxconn and many other NVIDIA suppliers are building advanced artificial intelligence servers.
Some key companies in Playground’s investment portfolio include Xlight, collaborating with ASML to innovate the light source of the next-generation EUV lithography machine, which is crucial for advanced chip manufacturing. Other companies like Arya Lab and Picojool are developing new optical interconnection technologies to enhance data transmission capacity in artificial intelligence data centers.
Meanwhile, PowerLattice, de-Matrix, Vertical Semiconductor, and NextSilicon focus on improving foundational energy efficiency and achieving memory computing architectures, two critical challenges for next-generation artificial intelligence computing.
Many of these companies have established closer collaboration with Taiwan suppliers, including TSMC, ASE Technology Holding, Alchip, GLOBAL UNICHIP CORP., and Win Semiconductors Corp.