2021 Leadership Summit - Pat Gelsinger, CEO of Intel on Opportunities in Semiconductors

oregon has always been a place for innovators for pioneers of industry [Music] for those willing to test the boundaries of science and those innovators have been good for oregon generating billions in annual revenue for state and local governments providing funding for education housing and to fight climate change [Music] today oregon has an opportunity to shepherd in a new generation of innovators you can find them waiting learning preparing with our help those innovators are ready to push oregon to new heights of science and human achievement to break barriers and continue in a tradition of making life better for all oregonians [Music] is there a podium oh great well thank thank you all um i'm a recidivist because i'm coming back for a second time but i really appreciate the honor to be able to do this before we dash off to to dc i'm going to be introducing pat gelsinger and he of course is the chief executive officer of intel serves on the board of directors but because i'm on the intelligence committee i get a chance to really get a lot of secret information a lot of things people don't really know and this is not exactly classified but i think oregon should know that pat was an early adopter and actually wrote the rules of the effort for net neutrality net neutrality a hugely important issue for oregon small businesses because after you pay your internet access fee you get to go where you want when you want pat gelsinger one of the founders of net neutrality i introduced the first bill in the senate for net neutrality but how about a big round for pat gelsinger starting the internet in the right direction with net neutrality now stay put here pat [Applause] we also know that he returned to intel earlier this year after spending 30 years of his career after starting the company in 79 it is really good news for all of us because we all want to have a domestic you know industry as i touched on earlier you can't have a big league economy without advanced chips and this is good news for us as he leads the company in our state in the effort for worldwide chip infrastructure with its headquarters in oregon so we understand that this is going to be a set of choices you can go various places and set up your operations where you choose pat and this company have made the commitment to make that choice in oregon to make that choice here and i think as we look as we look at the revival in our state because the pandemic was really hard on us in many particulars and that's time for another time for talking about all that what we want to do is be looking at the future and to me with pat at the helm we've got a chance for a significant growth spurt in high wage high skilled jobs pat this is our summit this is a chance when we lay out the agenda and you're getting a formal welcome back to oregon this morning welcome pat gelsinger [Applause] thank you so much senator and it truly is a pleasure to be back home in oregon but i'll tell you a little bit more about that in a second you know this is a tremendous opportunity for our nation the state and this area in oregon and it's my honor to be the first oregon business plan summit as the intel ceo and it is a thrill to be back home here you know i spent much of my career right here in oregon and in february of this year i was given my dream job to become the ceo of intel something i had only dreamed about decades earlier and then after a period of vacation as i call it 11 years outside of the company i was asked for this opportunity this great thrill to be the ceo again and intel is the company that puts silicon into silicon valley the silicon forest you know we're the company that created the microprocessor and in fact the 4004 that little chip that you see in the screen there began it all the first microprocessor the dawn of the computing era that we all get to participate in today and from those early 4k bite operations to now my grandkids can explore the moon landing from the comfort of their own pocket it's just amazing what we have accomplished and this technology is advancing and becoming more influential in every aspect of our lives every day and since that time oregon has played a dramatic and special role you know we spent as a family over 25 years here in oregon and that early ugly picture of me and the role that oregon has played as a critical site you know up on mount hood i taught all four of my kids to ski we had a vacation home in sun river you know we would go there once a month and enjoy mount bachelor you know we had so many special memories here you know i'm still a uh avid and highly biased to tillamook cheese my favorite is tillamook vanilla bean ice cream uh today you know if you know a good saturday is stumptown coffee and a voodoo doughnut right you know this is just a special place on earth that you all have here but it's also a special place for intel and we've had incredible opportunities as a company to make this home you know and some companies as i would say come to harvest we come to plant and farm as we're here in oregon and senators merkley and wyden have been extraordinarily strong advocates for our industry and by the time we finish our discussion today i hope you will come to even more deeply realize how critical the relationship of oregon and intel are for the future of all technology and for our nation and it seemed like a trivial moment 50 years ago when we first did our brown ground breaking off a tv highway and if we think about that to a moment it was you know some crazy startup comp relief from the bay area is starting a little outpost up here in oregon and wow have things changed in the 50 years since then you know then a personal computer was a luggable at just under 50 pounds you know today you have 10 times 10 000 times the computing capacity in less than two pounds and as we've increased our manufacturing capability from little three-inch wafers you know to now tens of thousands of twelve inch wafers and oregon has delivered over and over and over again since that first groundbreaking moment and when you go and visit our site now it is awesome 21 000 employees for intel in oregon did you hear me 21 000 employees for intel in oregon we've added 3 500 to that number in the last year alone the level of investment that we have put into the state the hiring the you know participation in the universities and the communities here and you know the supply chains that we bring here the incredible thing about manufacturing is every time i put a job in place all the suppliers have to show up all of the support personnel have to show up and on average somewhere between five and seven jobs for every job that we create is created in the state so greater than a hundred thousand people are associated with this industry this is huge and it's not all phds and yet we have some of the best phds in the planet but it's also construction workers it's technicians it's support personnel it's the teachers and the schools that we need these are extraordinarily good jobs and an extraordinarily good industry and we see this happening over and over again i started at intel myself when i was 18 as a technician with a two-year degree and now i'm the ceo of one of the greatest fortune 50 companies of all of history you know we believe very much in creating farming training and developing this talent you know and the businesses that we bring here becomes a hub of technology where googles and ntts and asml and applied materials they all have to gravitate around and support and participate with us and we're not done yet in fact our mod 3 the next major manufacturing location will be opening early next year will be yet again another expansion of our manufacturing and our jobs here in the state more jobs better wages increased revenues all of that happening here in oregon intel oregon intric intrinsically linked together for our future the partnership that we're creating and it truly is a thrilling opportunity to be here and if you haven't had the opportunity to go out by our site there in hillsboro i just say you need to take a trip right but expect to spend a while it is a massive site it's amazing what 50 billion dollars buys these days and we're doing some of the most advanced manufacturing that's done everywhere anywhere in the world this is the place that is making moore's law true past present and future at a conference we held a couple of months ago our innovation conference i boldly declared that moore's law is alive and well for the next decade or beyond today our highest end chip is 100 billion transistors on one system on a package component that fits in the palm of your hand 100 billion i thought i was pretty cool when i was designing the 80-46 it was 1.2 million now we have 100 billion on a single chip we declare that moore's law this doubling of transistors every two years or so is alive and healthy for the next decade because of the innovations that we're doing here in oregon and because of that by the end of the decade we'll put a trillion transistors on a single package and as i like to say we're not done until the periodic table is exhausted because we're going to keep finding chemistry and innovations and atomic and molecular structures that allow us to keep pushing the edge we will be relentless in our pursuit of such innovation and that is done right here in oregon let's take a look i just mentioned the 4004 and a year later the famous 8008 came out so i thought that would be a good place to start because while it was neat to look forward and think about what my grandkids will grow up with it is also amazing to think about how far we have come intel started out fabricating these small polysilicon transistors well they felt small at the time and then we made them even smaller this is when i joined intel by the way here was the basis of the computer revolution the insatiable demand for computing performance drove us harder us includes me and my first design team here we changed laser sources so we could print with even shorter wavelengths of light metal interconnects with higher mobility adding more and more layers on top innovating with new material science strain silicon high k dielectrics and replacement with metal gates and then we introduced the finfet by this point the classic gate length node naming was broken there was no single structure that measured that length anymore as we refined the finfet design node numbering became even less relevant less meaningful performance now comes from more than just transistor dimensions yes we are printing them even smaller but it also comes from different types of transistors optimized for different types of needs and put together an architectures that are tailored for software workload needs this picture you know and you don't have to be a semiconductor engineer to represent that in the width of your hair now we're putting a hundred thousand transistors it's just amazing the scale of the things that we're innovating right here in oregon and if you think about these innovations are they becoming more or less important to your future and i call it the four super powers of today first ubiquitous compute and this idea of the 4004 is now computers and everything it's you know your autonomous vehicle it's your personal computer it's your zoom but it's also your light switch computing is penetrating everything secondly we have this scalable cloud to edge infrastructure you can now have the largest super computer working at your behalf or with edge computing high bandwidth low latency infrastructure supporting your smart city pervasive connectivity today we have approximately 60 of humanity is connected persistently to the internet by 2030 that will be 90 of humanity and it's not just that we're connecting people we're now connecting everything and with ai we have the opportunity to bring intelligence with all that data and all that computing we can make sense of it all and these four are powerful each in their own right but together they're making each other faster and the result is every aspect of human existence is becoming more digital these superpowers will be driving that even more so into every aspect of how we live how we work how we learn how we teach how we care for each other our entire world is becoming digital and everything digital runs on semiconductors this is that important to the future of all aspects of our economy and our national security as i say god decided where the oil reserves are we get to decide where the fabs are built and for the next several decades the fabs are more important than where the oil reserves are let's put them where we want them and if we think about just one example industry in this the automotive industry and with the semiconductor shortages over the last two years everybody knows that automobile lines you know you now have thirty thousand dollar cars sitting there waiting for two dollar chips today the premium auto is four to five percent semiconductors with the advent of ev electric vehicles and autonomous vehicles that number is expected to be twenty percent by twenty thirty you know a four to five x increase in the semiconductor components going into every car so you thought we had shortages now you thought this was a big issue today you ain't seen nothing yet it's that important to every industry and every aspect of humanity now the global ship chip shortage has affected everything you know if you think about it you know today there's only three companies on the planet that can do what we do and you know about 20 years ago that number was 25. there was a lot of diversity in the industry but today samsung and korea tsmc in taiwan intel in the united states are capable of these most advanced r d and manufacturing why you know the r d is extraordinary we spend billions of dollars per year in r d and the manufacturing costs when we first did our first fab in aloha here right you know you know 40 some years ago when we first did that one it cost us a whopping seven million dollars to build the fab today a new fab costs 10 billion and today i have five fabs under construction as of this moment you know it's just incredible the capital capacity so of these in of this industry we've seen this rapid consolidation and we believe deeply in the design and manufacturing and you know intel brings to the table software skills silicon and platform processing and packaging technologies with at scale manufacturing that's what this is all about are we going to be able to have the integrity of our supply chains and as i say we need to have more globally balanced and resilient supply chains these innovations are affecting every aspect of your home of your education of your health care and we want them where we have integrity of supply and a balanced supply chain and this is why to us this is such a critical aspect for intel and for oregon you know we're the only remaining leader in this industry on american soil we've seen over the last 30 years 30 years ago the united states was manuring 37 percent of the world's supply of semiconductors today that number has declined to 12 percent europe 30 years ago was manufacturing 44 today that number has declined to 9 this industry has moved largely to asia and we've seen that acutely in the semiconductor shortage period where we're dependent on very fragile concentrated supply chains in asia is that how we want it to look in the future you know that's the question and why i'm so you know excited about what senator merkel and senator wyden were discussing because we want to keep the united states at the center and forefront of this industry which means we continue to have oregon be at the center and forefront of this industry you are one of the best position states in the nation to continue to build this out you know the domestic semiconductor capacity of the state is clearly right a driving force in the nation and it is the crown jewel of intel's and the nation's leading r d capabilities anywhere in the world you know but as the senators mentioned today we need help why did the industry move to asia so acutely over the last 30 years and did oregon ever take a vote that said we want to get rid of the semiconductor industry did you take that vote did i miss it we never said we don't want this industry what happened was the asian countries of taiwan korea and china said they did want it and they invested enormously to bring that industry to asia and now what sits before congress is are we going to level the playing field do we want to bring this industry at scale back onto american soil and i am so grateful for senator wyden's leadership in this regard facilitating what's called the chips act driving the fabs act you know this u.s competitive uh infrastructure legislation that sits before congress today is essential we are wasting time and rebalancing the world supply chain and oregon you have more at stake in this discussion than any other state in the nation i ask you i implore you i beg of you to be driving your legislation to get the chips act funded as quickly as possible this is that important not only to the state but to our nation this helps ensure that america maintains its position of leadership and we're committed to do our part we are hugely invested in the state you know as i say when you go visit that you know could you imagine ever moving our fabs out of the state 50 billion invested and more pouring in never right we are so committed you know we believe so deeply in the skilling right you know the social programs the educational programs you know and since this trivial little announcement in 1974 a lot of things have changed but the list of attributes that are needed for semiconductor leadership haven't you know we need a great state environment great quality of living for employees leadership you know uh technology university capabilities a community that is thrilled to be building and partnering with us and there is no state in america that has more to lose or more to gain in this fight than the state of oregon so as the ceo of intel i can tell you we're committed we are committed to aggressively lead the rebuilding of the semiconductor industry of america we've put our chips on the table pun intended you know we're already investing heavily in the build out of our manufacturing and i would just say to oregon are you as well are you as committed in this as we are and i do want to say thank you to the oregon leadership summit for the oregon business council for you know the efforts that you have put to invite me uh to be here i didn't realize that it had been over a decade since the intel ceo was in the state and you know had an opportunity in a public setting like this well that was long overdue you'll be seeing a lot more of me and i want you to know that intel is focused and i as a ceo are focused on restoring this industry just as you the renewal the resilience the balance of the global supply chain because we fundamentally believe that this is that important to our nation and to humanity this is our mission and we're going to lead it because of what we have built over the last 50 years in oregon we look forward to working together to achieve a dramatic turnaround in the footprint of manufacturing the restoration of unquestioned leadership because we believe we are planting the seeds for generations to come because every aspect of humanity is becoming more digital which means semiconductors is essential to every aspect of our children our grandchildren's future and because of that we are on mission to accomplish that and i am so grateful that oregon is going to be part of that journey with us thank you so much mass timber is unique in that it uses historically low value timber to create really high value products we have been really the forefront of the mass timber innovations in the united states here in oregon with manufacturing with design with architecture with construction the vision for the future is about bringing a broad coalition together to create an advanced manufacturing site for wood products here in oregon beginning here on site with prototyping of mass timber housing manufacturing that should happen likely right over here in this facility what we'd love to do here on the t2 site is prototype these modules in a way that can actually put housing in the community at the same time we have a housing crisis that's been building for decades corvallis salem eugene and obviously the the city of poland are cities that have experienced a tremendous growth on new talent that comes to the cities but also with that you will experience you know housing prices going up we see thousands of people that sleep on the streets every single night it's time to get people into housing that they can afford and it's time to revitalize our communities this product is going to open that door and it's going to fill that gap providing housing that is deployable almost immediately for families that need them the most to help alleviate some of the pressure we're seeing on housing markets and a shortage of housing in the region and we're really really excited to partner with the port as well as other players to bring this enterprise to life and the reason that it's so perfect here is because we're in an urban location we're at a nexus of a lot of these amazing industries we can really take advantage of all of the industries along the i-5 corridor and build a very regional supply chain that utilizes economies throughout the state throughout the region our hope is that we're also going to connect to the federal government effort around build back better and the idea that coming out of the pandemic and this economic dislocation will use federal investment to create new opportunities for people to get these high paying jobs and also to focus on issues like equity and advanced workforce development what i see is the opportunity to take climate solutions and housing solutions and have them be the same thing so we can all work together to create a product that is actually healing our climate at the same time get people into housing and make our communities more beautiful so it is a win-win situation for absolutely everyone you

Channel: Oregon Business Plan

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Length: 29min 0sec (1740 seconds)

Published: Thu Dec 09 2021