16 TIME June 6/June 13, 2022
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An Intel employee
holds a tray of
microchips at the
company’s complex
in Chandler, Ariz.THE VIEW WORLD ECONOMIC FORUM
WE ARE STANDING AT THE PRECIPICE OF
the digital age. The lightning- fast pace of
the tech evolution we are experiencing
today will seem slow in the not-so- distant
future as technology continues to change
how we interact.
Semiconductors are the brains accelerating this digital
revolution. These tiny chips power education, business,
health care, and more. They are vital to us today and es-
sential for the world we want to live in tomorrow. But as
demand grows, chip supply is tighten-
ing. Waves of the pandemic, the war in
Ukraine, and supply-chain shortages
have shown us just how fragile our tech-
nology ecosystem is—even leaving some
industries at a standstill.
We need bold new ways to
strengthen our industrial capacity if we
hope for a future fi lled with personal-
ized medicine and autonomous cars.
Now is our opportunity—as businesses,
governments, and citizens—to chart
a better, more resilient course. That’s
why public- private partnerships are
vital to our innovation, well-being, and
prosperity.
Public-sector investment boosts private-sector
productivity by 15% to 45% by supporting the premarket
foundations for success in areas like research and
development, manufacturing capacity, and workforce
training.
Workforce development and incentives to build
manufacturing facilities like Intel’s new factories in the
U.S. and E.U. create thousands of jobs, as well as much-
needed supply-chain infrastructure. In turn, the cities
and towns that welcome these new facilities become
magnets for other industries. And investing in research
and development creates life- changing technologies for
the future. The internet, GPS technology, and the Human
Genome Project all stemmed from federal funding—and
their public benefi t is impossible to measure.
TODAY, 80% OF CHIPS are produced in Asia. That is no ac-
cident. South Korea, mainland China, and Taiwan imple-
mented policies that recognize the strategic importance
of the industry. But by having a high concentration of ad-
vanced semiconductor manufacturing in one region, the
world’s digital foundation is susceptible not only to geopo-
litical risks, but also to resource constraints and natural di-
sasters. A one-hour power outage in a small area of Taiwan
aff ected 10% of the world’s dynamic random-access mem-
ory (DRAM) supply.
Partnerships are the path
to digital-age prosperity
By Pat Gelsinger
We have an ambitious goal to re-
store chip manufacturing in the U.S.
and E.U. to 50% of the world’s total—
but a coordinated eff ort between pub-
lic and private sectors will be key.
The E.U. recently announced a
public-private strategy for advanc-
ing its semiconductor industry. The
European Chips Act adds €15 billion
to an existing €30 billion in public
investments to create new STEM-
focused programs, attract new talent
to Europe, and build new infrastruc-
ture. In response, Intel announced it
would spend as much as €80 billion
over the next decade to build a next-
generation chip eco-
system across the E.U.
And in the U.S., hope
for building a more
robust domestic sup-
ply chain lies in the
CHIPS for America Act,
a plan to invest
$52 billion in U.S. chip
manufacturing, design,
and research. This in-
vestment would attract
signifi cant participation
from the private sector.
Intel alone anticipates
investing an additional
$100 billion in U.S. manufacturing ca-
pacity over the next decade, in addi-
tion to a new $20 billion foundry an-
nounced this year.
Critics argue that the free market
is best at identifying successful in-
dustries. But this ignores the neces-
sity of governments to help structure
the economy in the national interest
when there is a market distortion due
to policies elsewhere. The challenge
is just too big and complex for pub-
lic and private entities to assume we
don’t need each other’s help.
As our world grows more and more
digital, let’s not leave our most vital
industries to chance. Only by engag-
ing public and private stakeholders
can we simultaneously drive innova-
tion, meaningful social outcomes, and
economic prosperity for all. Let us
enter the digital age with intent—and
unfettered access to critical technolo-
gies for society.Gelsinger is CEO of IntelPHILIP CHEUNG—THE NEW YORK TIMES/REDUX; GELSINGER—AP