Intel CEO Emphasizes More US Chip Production, Fewer Share Buybacks

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Intel Corp. plans to spend more money on building semiconductors and less on share buybacks, the chip giant’s CEO said on Sunday. In an interview with CBS’s “60 Minutes” that aired Sunday night, CEO Pat Gelsinger blamed part of the current global chip shortage on the fact that 75% of global semiconductor manufacturing takes place in Asia.

“Twenty-five years ago, the United States produced 37% of the world’s semiconductor manufacturing … Today, that number has dropped to just 12%,” Gelsinger said, according to a CBS News transcript. “It does’nt sound good. And anyone who looks at the supply chain says, ‘That’s a problem.’ “Gelsinger repeated his prediction that it would be” a couple of years “before chip production catches up with demand, and said Intel is looking to make more. chips in the United States “This is a big and critical industry and we want more on American soil – the jobs we want in America, control of our long-term technology future,” he said. Reporter Lesley Stahl noted that Intel has spent more on share buybacks than on research and development in recent years, but Gelsinger, who became CEO earlier this year, said that will change. “We won’t be anywhere near being as focused on buybacks going forward. as we have done in the past, “he said.” And that has been reviewed as part of my coming to the company, agreed with the board of directors. “Intel has lobbied the Biden administration to help revive domestic manufacturing. of chips through incentive programs, and the White House has proposed $ 50 billion to help the industry as part of its $ 2 trillion infrastructure plan. In March, Gelsinger announced plans for a $ 20 billion expansion of Intel’s chip manufacturing plant in Arizona, saying that Intel would not only begin manufacturing most of its products in-house, but would also expand the use of manufacturers. external and would lease some of their fabulous. Intel INTC shares, -1.29% are up 15% year-to-date, compared to the SPX of the S&P 500, an increase of -0.72% 11% this year.