The CEO of Intel Forecasts That China Won’t Annex Taiwan in the Next Five Years



The United States and China have developed a public dispute over semiconductors and their significance to national security. There seems to be concern over a potential Chinese attack on Taiwan.

Pat Gelsinger, the chief executive of Intel (NASDAQ:INTC), stated that he does not believe that would occur in the following five years, according to Citi analyst Christopher Danely, who was present at a dinner with Gelsinger to discuss investments.

Taiwan Semiconductor (NYSE:TSM), among the world’s largest semiconductor foundries, makes chips for a variety of customers, including Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Apple (NASDAQ:AAPL), and others. 

Taiwan Semiconductor (TSM) Chairman Mark Liu stated to CNN last month that “nobody can control [Taiwan Semiconductor] by force,” and that if it were captured by military force or invasion, its “advanced production facilities” would render it “non-operable.”

Despite the U.S.’s long-standing “One China” policy, tensions between the two countries have risen in recent weeks as a number of senators and politicians have visited Taiwan. House Speaker Nancy Pelosi met with TSM Liu and other executives from Taiwan’s semiconductor sector last month.

A number of other American officials have also visited Taiwan, notably Arizona Governor Doug Ducey, who noted that Taiwan Semiconductor (TSMnew )’s plant in his state was doing “excellently.”

In addition to his remarks regarding China and Taiwan, Intel’s (NASDAQ:INTC) Gelsinger also mentioned that it is possible that the recently passed CHIPs Act will be extended for five more years in an effort to limit Chinese access to “critical technologies.”

Some on Wall Street believe that Intel (NASDAQ:INTC) has benefited the most from the bipartisan agreement, which gave the sector $52 billion in funding.

It is reported that the Biden administration is considering additional laws to restrict China’s access to sophisticated semiconductors, such as banning the export of specific chipmaking machinery. The U.S. government had warned Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) earlier this month to stop selling certain devices to Russia from China.

Nvidia (NASDAQ:NVDA) noted that through September 1, 2023, the U.S. government has approved the export of its H100 integrated circuits as well as order fulfillment and logistics for both A100 and H100 through the company’s Hong Kong location.

Featured Image-  Megapixl @Sax

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