THE CEO INTERVIEW www.ceotodaymagazine.com 18 How is Intel’s manufacturing strategy presently helping to balance and diversify the global supply chain of semiconductors? Semiconductor chips are seen as “the new oil”, given how integral they are to the devices that power our daily lives. But as demand has grown, chip supply has tightened – exposing fragilities in the silicon supply chain, and the fallout from the pandemic is still causing ripple effects that are likely to continue for a few more years. Historically speaking, the semiconductor industry has been more vulnerable to disruption than most – just this year in March a 90-minute power outage in a small area of Taiwan impacted 10% of the world’s dynamic random-access memory (DRAM) supply. And who can forget the dramatic blockage of the Suez Canal last year, and the chaos that caused for supply chains across the world? All of that said, the challenges we face today are far from new – many are deeply rooted in the industry but have been exacerbated by the events of recent years. Even so, balancing and diversifying a sector of this scale requires industry players and governments across the world to act collectively now. Inevitably, it will also take some time. Intel’s strategy focuses on strengthening the global supply chain in the long term, but the ball is already rolling on this.We’re actively investing and building capabilities in various parts of the world. In turn, we hope to address the difficulties that can come with an industry being geographically condensed in a particular region. So, in addition to building fabs across the pond, we’re also developing facilities closer to home in Europe. That’s particularly important to me because Europe is very much a part of Intel’s heritage. Since our first European office opened in the UK nearly 50 years ago, we have continuously grown our presence and investment in the region. Today, Intel remains firmin itsmission to make a “one-in-a-generation” investment in Europe as part of its IDM 2.0 strategy. And we’ve already seen these investments begin to come to life across the region. For example, earlier this year in March Intel announced its €33 billion investment for R&D and manufacturing across the EU, with plans to invest as much as €80 billion in the EU over the next decade. These sites would bring more than manufacturing, they will also generate innovation: the new fab in Germany is expected to deliver chips using Intel’s most advanced, Angstrom-era transistor technologies, serving the needs of both foundry customers and Intel for Europe and globally as part of IDM 2.0. We’ve also recently announced our plans for amicrochipdesign laboratory in Barcelona, a key investment for the future of Spain’s economy. Beyond generating technology and attracting highly qualified talent in Barcelona, the arrival of a centre of this magnitude in Spain will contribute to reducing foreign dependence on microchips, key technological elements for the future of the industry. There are also further investments planned in Ireland, France, and Poland. And with the arrival of the European Chips Act and the Digital Decade targets, it’s clear to me that our region’s leadership is as ready as we are to re-build a thriving, state-of-the-art and regional semiconductor supply chain. All of this will contribute to the EU’s goal to increase the semiconductor production share from 9% today to 20% by 2030, helping to increase supply chain resiliency in the whole of EMEA and arguably the world. Why must the European region look to a diverse talent pool to bring its digital supply vision to life? Simply put, all the vision and innovation in the world mean little if we lack the talent and the skills to execute it. The ongoing shortage of technical skills, or the lack of female representation in STEM-related fields, will hold the region’s digital supply vision back. As such, in order to secure a viable future for Europe’s digital vision we need to think on the front foot – and this is especially true when it comes to talent. Luckily, EMEA is one of the most diverse regions in the world. Across 115 nations, EMEA boasts a talent pool that can drive innovation across manufacturing, R&D, design, software development, and more. As we look to diversify the global supply chain, tech companies must recognise the region’s potential to usher in the next era of technological advancements. And an unwavering commitment to D&I will help us get there.
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