Intel chief Pat Gelsinger: Too many chips made in Asia

Intel's new chief executive has told the BBC it is not "palatable" that so many computer chips are made in Asia.The majority of processors are currently manufactured in the region, with Taiwan's TSMC and South Korea's Samsung the dominant players.US-based Intel plans to set up a new division to make chips for other companies based on their own designs.Until now, its focus had been on manufacturing its own chips in its factories across the world.Pat Gelsinger has said Intel will invest $20bn (£14.6bn) in two new fabrication plants in the US state of Arizona, in addition to a major expansion of an existing Irish facility in County Kildare."Having 80% of all supply in Asia simply isn't a palatable manner for the world to have its view of the most critical technology," Mr Gelsinger said."Every smartphone, every telemedicine, every remote worker, every remote education, every autonomous vehicle, every aspect of humanity is becoming more digital."And when it becomes digital, it runs on semiconductors."This is the heart of every aspect of human existence going forward. And the world needs a more balanced supply chain to accomplish that. We're stepping in."IMAGE COPYRIGHTPA MEDIAimage captionIntel says the expansion of its facility in Leixlip, County Kildare, will create 1,600 permanent jobsHe added that Intel also intended to build a further chip-making foundry in a different European nation, but would not be drawn about exactly where.Missed targetWhile these moves will be too late to tackle an existing shortage of chips which is causing problems for car-makers and others, they could help the West avert a future crisis.Politicians in the US and the EU have called for more chip-producing factories to be built locally.This is partly driven by concerns that Beijing aims to reunify mainland China with Taiwan, while North Korea poses a threat to its southern neighbour.However, Intel has repeatedly missed manufacturing targets over recent years.As a consequence, its latest desktop processors use older transistor technology than rival silicon from AMD and Apple, putting the components at a disadvantage.Mr Gelsinger must now prove his company has put these problems behind it if the new business is to thrive.Past gloryThe 60-year-old only returned to Intel last month after his predecessor was ousted over concerns about falling market share, among other problems.IMAGE COPYRIGHTINTELimage captionChip manufacturing requires dust-free environments so the transistors and circuits are not damagedBut earlier in his career, Mr Gelsinger spent three decades at Intel, including a role as its first chief technical officer.One activist investor had pressed him to go "fab-less", and spin off Intel's plants to concentrate on chip designs.