Key to Economic Security-Semiconductor "Intel's Shadow and Strategy"

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Russia's invasion of Ukraine will impose export restrictions on semiconductors, but semiconductors hold the key to economic security. The world's big three manufacturers of semiconductors are Intel in the US, Samsung Electronics in South Korea, and TSMC in Taiwan. The three companies have sometimes been in fierce conflict, sometimes holding hands, involving governments. Shinji Kondo, a professor at Otemon Gakuin University, reports on the latest trends of Intel, which has been at the top for many years. [Mainichi Shimbun Economic Premier] ◇ Big Three announces that it will invest 20 billion dollars (about 2.3 trillion yen) to build a state-of-the-art factory in Ohio in late January, a giant of the semiconductor industry, Intel, a large factory in the United States .. TSMC, the other two largest semiconductor big three, has already announced plans to build a large factory in Arizona and Samsung Electronics in Texas. Each factory is scheduled to start operations one after another from 2024 to 25, and fierce competition will take place in the United States. Intel was founded in 1968 by Gordon Moore and others, who are known for advocating "Moore's Law" that the integration rate of semiconductors doubles in 18 months, and has been at the forefront of the industry with high technology. rice field. The company's central processing unit (CPU) has been incorporated into many personal computers. When it was started, the "Intel Inside" logo appeared on the screen, and it swept the world with an overwhelming presence. Together with Microsoft's OS (basic software) Windows, it became a standard for personal computers and was called "Wintel's hegemony." ◇ Shadow on Intel's cutting-edge technology From around 2015, Intel has fallen behind TSMC and Samsung in the competition for miniaturization of circuit line width, which holds the key to semiconductor performance. TSMC mass-produced semiconductors with a circuit line width of 5 nanometers (nano is one billionth of a meter) for the first time in the spring of 2008, and Samsung lined up in the latter half of the same year. Intel is also taking time to mass-produce 7 nanos one generation ago, and there is a difference of two generations. Reflecting such a predicament, the market capitalization of Intel and TSMC, which had been competing for a long time, began to widen from around the middle of 20 years, and TSMC was in the $ 500 billion to $ 600 billion range. While it remains, Intel remains sluggish at around $ 200 billion. Even CPUs that are good at it are rapidly losing market share to Advanced Micro Devices (AMD). So, in February 2009, Pat Gelsinger, who was also the CTO, was selected as the CEO. Unlike TSMC, a semiconductor contract manufacturing company (foundry), Intel is a vertically integrated manufacturer that handles everything from design to manufacturing. However, Gelsinger announced in the month following his inauguration that he would move to a more vertically integrated business model, increasing outsourcing to other companies while also embarking on a foundry business. ◇ It is believed that Intel has outsourced the production of cutting-edge 3 nano products to TSMC in accordance with this policy as Big Three competes for customers. Gelsinger visited Taiwan in mid-December 2009 to meet with TSMC Chairman Liu Tokuon. He hasn't officially commented on either Intel or TSMC, but Taiwanese media reports that the final confirmation of the consignment of manufacturing 3 nano products has been made. Intel's entry into the foundry space, another new strategy, was a surprise in the industry. With this, it will be in a relationship of competing with TSMC and Samsung, which is also a vertically integrated type but also engaged in contract production. From TSMC's point of view, Intel is both a customer and a rival. According to the electronic version of the Taiwanese newspaper "Industry and Commerce Bulletin," Intel is expected to become one of the top three TSMC customers within a year or two with the intention of increasing manufacturing outsourcing to TSMC. Liu asked Gelsinger to pay a deposit if Intel began to produce its own 3 nano products in the future, as TSMC's capital investment for Intel would be wasted. Gelsinger's reaction is unclear. However, it highlights Intel's painful position of having to entrust its fate to its opponents. ◇ Biography of Shinji Kondo Born in Kobe in 1956. Joined The Mainichi Newspapers in 1979. He has served as Hong Kong bureau chief, Taipei bureau chief, Osaka Economics Director, and editorial vice chairman. 2014 Professor at Otemon Gakuin University. His books include "Taiwanese who fought against Peng Ming-min Chiang Kai-shek" and "Charismatic founder of Asian talented company".