WEBVTT - Pat Gelsinger 0:00:00.040 --> 0:00:03.119 Thank you so much. So do you have a direct 0:00:03.160 --> 0:00:07.520 line to the president? Now? Well, he's enthusiastic. Uh, you know, 0:00:07.640 --> 0:00:11.080 obviously the project is significant and a lot of interest 0:00:11.119 --> 0:00:13.600 around it, but you know it's also he says, hey, 0:00:13.600 --> 0:00:15.760 I really want your views, you know, I want you 0:00:15.920 --> 0:00:19.800 I want your views on the semiconductor industry, on the shortage, 0:00:19.880 --> 0:00:22.280 you know, how to be you know, a more effective 0:00:22.280 --> 0:00:26.279 partner with business, some of the geopolitical topics. So we're 0:00:26.400 --> 0:00:28.600 we have a date plan to get together again. When 0:00:28.640 --> 0:00:30.000 you talk to him, do you feel like he learned 0:00:30.040 --> 0:00:33.080 something like? What did he take away from the conversation? 0:00:33.159 --> 0:00:34.640 You know, I gave him a twenty minute of briefing, 0:00:34.800 --> 0:00:36.960 you know, and some have said, you know is you know, 0:00:37.159 --> 0:00:39.479 how how there is he But he was engaged. He 0:00:39.560 --> 0:00:45.080 was asking questions, seeking to understand, excited about the benefits 0:00:45.120 --> 0:00:48.120 to the region. And I'll tell you, Emily, this this 0:00:48.200 --> 0:00:51.400 idea of the silicon heart land, it's just pulled on 0:00:51.520 --> 0:00:54.960 something deeper in the nation. And uh, you know right, 0:00:55.000 --> 0:00:56.800 you know, the plans have sort of been underwork and 0:00:56.840 --> 0:00:59.040 all of a sudden, you know, hey, you know, let's 0:00:59.040 --> 0:01:00.880 get this announced. The want to want a kick in 0:01:00.920 --> 0:01:05.640 the pants for the chip sick. That's Intel CEO Pat 0:01:05.640 --> 0:01:09.200 Gelsinger sharing details on his recent meeting with President Biden 0:01:09.360 --> 0:01:12.080 at the White House. This after unveiling a plan to 0:01:12.160 --> 0:01:15.360 invest tens of billions of dollars in the American heartland 0:01:15.440 --> 0:01:19.440 of Ohio, create thousands of jobs, and bring chip manufacturing 0:01:19.520 --> 0:01:22.720 back to US soil. It's part of an ambitious effort 0:01:22.720 --> 0:01:25.880 to revitalize a lagging company and rest control of an 0:01:25.880 --> 0:01:30.039 industry from Asia. But the question remains, will it work? 0:01:30.720 --> 0:01:33.080 Joining me on this edition of Bloomberg Studio at one point, 0:01:33.080 --> 0:01:37.280 oh Intel CEO Pat Gelsinger on his one year anniversary 0:01:37.400 --> 0:01:40.600 of becoming CEO. He's returned to the company where he 0:01:40.680 --> 0:01:43.880 spent the first thirty years of his career to shake 0:01:43.959 --> 0:01:59.639 things up, and he hopes to restore the chip maker's legacy. 0:02:00.320 --> 0:02:02.440 That's so good to be here with you. It's always 0:02:02.440 --> 0:02:04.280 a joy, Emily, to be with you. Thank you for 0:02:04.360 --> 0:02:06.600 having me and here at the Intel Museum, which is 0:02:06.600 --> 0:02:10.120 obviously a sign of the legacy you're part of because 0:02:10.120 --> 0:02:13.680 you worked here for thirty years. Yeah, yeah, thirty years, 0:02:13.919 --> 0:02:17.680 you know, in eleven year vacation and then now back 0:02:17.760 --> 0:02:20.520 for just about a year. So tell me about that 0:02:20.600 --> 0:02:23.120 call when you got asked to come back as CEO 0:02:23.320 --> 0:02:26.200 or coming up on the one year anniversary. It was 0:02:26.360 --> 0:02:31.040 right before Thanksgiving a year plus ago, and the request 0:02:31.200 --> 0:02:36.080 was would you consider joining the board? So I asked Michael, right, hey, Michael, 0:02:36.080 --> 0:02:37.760 what do you think? Right? He says, hey, they need 0:02:37.760 --> 0:02:41.000 to help go help him, and uh, yeah, you know that, Michael, 0:02:41.320 --> 0:02:45.040 And uh, you know, the vm Ware board was okay, yeah, 0:02:45.080 --> 0:02:47.160 you know they you know, with Michael supporting it, We're 0:02:47.200 --> 0:02:50.200 okay with that. So why interviewed to join the board 0:02:50.840 --> 0:02:53.680 for the month of December? They said, would you consider 0:02:53.720 --> 0:02:57.200 being the CEO? So it just ruined my Christmas season 0:02:57.280 --> 0:03:01.120 last year. Your eighth grandchild is on the way, and 0:03:01.639 --> 0:03:03.680 you know, the vm Ware gig and I wanted to 0:03:03.680 --> 0:03:06.520 get the public offering of vm We're done and everything. 0:03:06.600 --> 0:03:10.440 So it was sort of like wow or wow, and 0:03:10.720 --> 0:03:12.520 you know, how was that going to play? So three 0:03:12.560 --> 0:03:15.799 weeks of chaos and then obviously the January fift announcement, 0:03:15.960 --> 0:03:18.240 you know, and the idea of coming home, you know, 0:03:18.360 --> 0:03:22.400 being a successful CEO, coming back now to the company 0:03:22.440 --> 0:03:24.480 that I was born and raised in. As I like 0:03:24.560 --> 0:03:26.839 to say, I went through puberty here I started so young, 0:03:27.320 --> 0:03:31.120 and now the opportunity to lead and really help the 0:03:31.200 --> 0:03:34.840 resurgence and re establishment of this iconic company that really 0:03:34.920 --> 0:03:36.440 is the honor of a lifetime. Well, was it like 0:03:36.520 --> 0:03:38.520 to return to a company that has so much history 0:03:38.560 --> 0:03:40.760 which you were part of, but also knowing you needed 0:03:40.760 --> 0:03:44.760 to shake things up? The first first staff meeting, you know, February? 0:03:45.840 --> 0:03:48.320 You know they usually started at nine I started the 0:03:48.360 --> 0:03:50.760 first one at seven am, and the first bullet of 0:03:50.800 --> 0:03:54.360 the first slide. We will have a toward pace, right, 0:03:54.440 --> 0:03:58.000 just setting them. Yeah, it's it's a new word in 0:03:58.120 --> 0:04:04.600 the intel of vocabulary. The industry is moving rapidly, massive shortages. Uh, 0:04:04.680 --> 0:04:08.840 the competitors are performing well. Hey, what we've been doing 0:04:09.120 --> 0:04:12.040 ain't working. Team. We have to set a new course 0:04:12.080 --> 0:04:15.240 for the future, and that's gotten underway very rapiding. We've 0:04:15.280 --> 0:04:17.240 gotten a lot done over the first year. But you 0:04:17.279 --> 0:04:21.320 don't change, you don't fix, you don't re establish. After 0:04:21.400 --> 0:04:25.000 a decade of bad decisions and poor execution, It's gonna 0:04:25.000 --> 0:04:27.200 take a while, but we're well on our way after 0:04:27.320 --> 0:04:29.279 year one. He took a job in the middle of 0:04:29.279 --> 0:04:33.400 a pandemic, in the middle of a supply crisis. Two 0:04:33.480 --> 0:04:36.200 themes that are still with us today. If you could 0:04:36.240 --> 0:04:39.080 give yourself an honest one year report card, what would 0:04:39.080 --> 0:04:41.520 it say, give yourself a grade? Well, let me give 0:04:41.560 --> 0:04:44.279 you two grades. Let me give you two grades. The 0:04:44.320 --> 0:04:46.440 board gives me an A. Myself, I give myself an 0:04:46.440 --> 0:04:49.760 A minus. Right now, in some regards, we're ahead of 0:04:49.760 --> 0:04:52.240 where I thought we'd be. In some areas were not 0:04:52.279 --> 0:04:55.160 as far as I thought we'd be. And it really 0:04:55.279 --> 0:04:59.920 is more a statement of the massive challenge in front 0:05:00.000 --> 0:05:02.479 of us. And we still got analysts out here. Someone 0:05:02.640 --> 0:05:04.760 piss me off, right, you know, I call them my 0:05:04.800 --> 0:05:07.680 bears and my perma bears at that and sort of say, yeah, 0:05:07.680 --> 0:05:10.680 it's the right strategy, pat, but I'm not sure if 0:05:10.680 --> 0:05:13.200 I need to invest for a year or two. You 0:05:13.240 --> 0:05:16.280 know yet you know whence you're going to start materializing 0:05:16.760 --> 0:05:20.080 in the marketplace as well. So good progress. It's a 0:05:20.120 --> 0:05:23.640 good year behind us, and people are really getting excited 0:05:23.680 --> 0:05:26.920 about the new old. Do you ever have it out 0:05:26.920 --> 0:05:29.839 with the perma bears? Of course, you know, we'll debate 0:05:29.960 --> 0:05:33.479 on different aspects, and hey, I appreciate the virgent views. 0:05:33.839 --> 0:05:36.240 You know, that's part of the intel culture, right, you know, 0:05:36.600 --> 0:05:40.080 Andy would argue everything as I would say, if you 0:05:40.080 --> 0:05:43.719 were right with Andy, you were wrong. Well, you know 0:05:43.800 --> 0:05:45.520 something about hard work because you grew up on a 0:05:45.560 --> 0:05:49.400 farm Robson. Yeah, I say, when you know, between Redding 0:05:49.400 --> 0:05:51.880 and Hershey halfway as rob a zone and we were 0:05:51.920 --> 0:05:54.240 five miles outside of town. So when you got nowhere, 0:05:55.000 --> 0:05:57.640 we were five more miles. But tell me about your upbringing. 0:05:58.160 --> 0:06:00.240 How do you go from farmer in the bile of 0:06:00.240 --> 0:06:05.000 Pennsylvania to engineer in Silicon Valley. My dad number nine 0:06:05.040 --> 0:06:08.240 of ten kids, and Grandpa said, you know, we have 0:06:08.360 --> 0:06:11.560 enough farms in the family. Just work with your siblings. 0:06:11.800 --> 0:06:15.280 I'm the oldest boy. Had we had a farm, I'd 0:06:15.279 --> 0:06:18.400 be the farmer, because that's what the oldest boy does. 0:06:18.720 --> 0:06:24.160 Sixteen years old, accidentally took a scholarship exam and one 0:06:24.960 --> 0:06:27.880 so I ended up, you know, having the opportunity to 0:06:27.920 --> 0:06:31.440 go get a technicians degree, you know, community college. And 0:06:31.680 --> 0:06:34.320 so at sixteen years old, skipped my last year and 0:06:34.320 --> 0:06:37.360 a half of high school, finished my associate's degree, and 0:06:37.520 --> 0:06:42.359 Intel came interviewing for technicians. So here I am eighteen 0:06:42.440 --> 0:06:46.400 years old. Intel on the West Coast invites me to 0:06:46.480 --> 0:06:48.920 come for an interview. Never been on an airplane, never 0:06:48.920 --> 0:06:50.640 been to the West Coast. How long do you think 0:06:50.640 --> 0:06:54.240 it said took for me to say yes offline to California, right, 0:06:54.240 --> 0:06:56.200 It was like to nano seconds and they offered me 0:06:56.240 --> 0:06:58.960 a job. And the interviewer said, you know, in the 0:06:59.000 --> 0:07:02.080 interview he said smart, aggressive, arrogant, he'll fit right in. 0:07:02.520 --> 0:07:09.280 You actually became the chief architect of the processor Intel processor, right, yes, yes, 0:07:09.400 --> 0:07:12.360 And you had to pitch that to Steve John. I 0:07:12.360 --> 0:07:15.200 want to hear about that meeting. You know, Jobs and 0:07:15.200 --> 0:07:18.480 Andy they had argued early and Jobs went off on 0:07:18.560 --> 0:07:22.080 a different path, right, And because of that that we're 0:07:22.120 --> 0:07:27.600 using other microprocessors. And so I tried to convince Steve 0:07:28.080 --> 0:07:31.520 come back to Intel, right, So, and I tried to 0:07:31.520 --> 0:07:33.080 sell him in the three D six. He sort of 0:07:33.120 --> 0:07:34.760 threw us out. I tried to sell him in the 0:07:34.800 --> 0:07:38.400 forty six, and he threw us out at the time. 0:07:38.600 --> 0:07:41.920 And eventually we want him over with the Centrino products 0:07:41.920 --> 0:07:43.880 some number of years later. But you know, it was 0:07:43.920 --> 0:07:52.880 also his insatiable detailed demand for engineering and industrial engineering excellence, 0:07:53.080 --> 0:07:55.160 you know, And to me, that's just what set him apart. 0:08:04.320 --> 0:08:07.600 This is my conversation with the CEO of Intel, Pat Gelsinger, 0:08:08.080 --> 0:08:10.920 coming up, how the chip Giant plans to boost production 0:08:11.000 --> 0:08:13.960 to meet a surgeon demand by making bowl bets in 0:08:14.000 --> 0:08:17.200 the foundry business and new product lines. But can the 0:08:17.240 --> 0:08:20.320 company pull it all off? And at once we discussed 0:08:20.320 --> 0:08:23.640 Gelsinger's vision to bring manufacturing back to the United States. 0:08:23.920 --> 0:08:26.880 I'm Emily Chang, this is Bloomberg Studio one point out, 0:08:27.120 --> 0:08:39.800 stay with us. You became Intel's first CTO. When did 0:08:39.840 --> 0:08:42.280 you know you wanted to be a CEO? That you 0:08:42.360 --> 0:08:45.320 wanted something more? So in my twenties, I had my 0:08:45.360 --> 0:08:50.320 first patent, I had my uh first book being written, 0:08:50.360 --> 0:08:53.880 Programming the six It was a best seller, Emily right, 0:08:53.960 --> 0:08:56.280 you know, had you know, gotten to be a VP 0:08:56.600 --> 0:08:59.640 of the company right at the youngest VP ever? And 0:08:59.679 --> 0:09:02.800 it was like, okay, what do I want to do next? Right? 0:09:02.920 --> 0:09:05.640 And then through that was sort of the soul searching time. 0:09:05.920 --> 0:09:09.360 And I wrote my mission statement that said become CEO 0:09:09.440 --> 0:09:13.280 of Intel. And you know, here I am six year 0:09:13.280 --> 0:09:16.120 olds being You've got been kidding me? Right, you know 0:09:16.160 --> 0:09:19.760 what are you talking about? And but it became this 0:09:19.920 --> 0:09:22.440 driving force in me that I'd be in meetings with 0:09:22.559 --> 0:09:27.000 Andy Grove, Bob Noise sort of. I was armchair CEO 0:09:27.280 --> 0:09:29.880 ing for a decade and a half as I'm sitting 0:09:29.920 --> 0:09:33.199 in the room, you know, with these industry legends, and 0:09:33.320 --> 0:09:35.240 all the time it was making me better. A lot 0:09:35.320 --> 0:09:37.440 of people thought you would be a shoeing for the 0:09:37.520 --> 0:09:40.600 CEO job when that job came open. So why did 0:09:40.600 --> 0:09:43.840 you leave if this was your dream job? Yeah? You know, 0:09:43.880 --> 0:09:46.680 there was a period of time under Odeline. He's a 0:09:46.760 --> 0:09:50.280 leadership where he had a different view of leadership, different 0:09:50.360 --> 0:09:53.600 view of what he wanted his successor it's to look like. 0:09:53.760 --> 0:09:55.720 And you know, literally I was nudged out of the 0:09:55.720 --> 0:10:00.440 company at the time and I was pushed out. Let's say, 0:10:00.840 --> 0:10:04.080 you know somewhere between those two. You know that eleven 0:10:04.120 --> 0:10:07.280 year period. By the way, Steve Jobs was outside of 0:10:07.360 --> 0:10:11.480 Apple for eleven years, right, And there's something I'm trusting. Yeah, 0:10:11.520 --> 0:10:13.920 you know, being away and I call it the death 0:10:13.920 --> 0:10:16.760 of a vision, your period where you really have to 0:10:16.800 --> 0:10:19.800 sort of look and say, Okay, why am I pursuing this? 0:10:20.360 --> 0:10:24.440 Why wasn't I ready for that job? Out of these circumstances, 0:10:24.520 --> 0:10:26.720 What am I going to learn? I've also seen the 0:10:26.800 --> 0:10:30.080 vm Ware and the Dell and the e MC culture 0:10:30.400 --> 0:10:33.120 up close. I just feel so much more equipped now 0:10:33.320 --> 0:10:36.120 and had I stayed on the linear path to CEO, 0:10:36.320 --> 0:10:39.200 I wouldn't have been the leader that I am today. 0:10:39.320 --> 0:10:43.520 So those eight years as CEO of vm ware hugely value. 0:10:43.520 --> 0:10:46.120 You wouldn't change a thing. I wouldn't change a thing, right, 0:10:46.120 --> 0:10:48.559 And I learned the value of software, and hey, and 0:10:48.720 --> 0:10:50.960 I's gonna do a whole lot more software in the future, 0:10:51.000 --> 0:10:53.600 I promise you. But it was also a period of 0:10:53.640 --> 0:11:00.280 personal development as well, developing humility, confidence, insights on how 0:11:00.280 --> 0:11:03.600 to be a leader at this scale. Moore's law has 0:11:03.640 --> 0:11:06.640 guided the development of the chip industry for decades. It's 0:11:06.640 --> 0:11:10.160 not a law per se, but it's been critical to 0:11:10.240 --> 0:11:13.880 the development of semiconductors. We might even go super Moore's 0:11:13.960 --> 0:11:17.040 Law this decade. And you know four reasons I said 0:11:17.120 --> 0:11:19.920 this case. We know how to build transistors that we 0:11:19.960 --> 0:11:22.400 can see them scale for the next decade. We have 0:11:22.480 --> 0:11:24.600 power delivery. You know, how do you get the power 0:11:24.640 --> 0:11:27.959 into and out of the chip with our power via technology. Third, 0:11:28.360 --> 0:11:31.920 we have the lithography. We also see that packaging will 0:11:31.960 --> 0:11:33.719 called two and a half and three D, which is 0:11:33.760 --> 0:11:37.199 becoming much more like wafer building as we look to 0:11:37.280 --> 0:11:40.800 the future. So here we are a hundred billion transistor 0:11:40.880 --> 0:11:43.680 chip will be our largest chip that we do today, 0:11:43.840 --> 0:11:46.960 or ponte Vecchio for high performance computing. By the end 0:11:46.960 --> 0:11:50.880 of the decade, we will deliver the trillion transistor chip. 0:11:51.360 --> 0:11:53.719 And I just say, you know, with utter confidence, I 0:11:53.760 --> 0:11:56.240 sit here and say, my team's gonna make that happen. 0:11:56.440 --> 0:11:59.760 So industry, buckle up, Hang on, we are going for 0:11:59.800 --> 0:12:02.280 a ride. So what happens after a decade? I mean, 0:12:02.320 --> 0:12:04.920 do you think Moore's law can continue forever? To be 0:12:05.080 --> 0:12:07.800 Moore's Law has always been about a decade right where 0:12:07.800 --> 0:12:10.679 we can see in front of us the core technologies, 0:12:10.720 --> 0:12:13.240 the barriers. You know, we're lining up the things that 0:12:13.280 --> 0:12:15.720 will allow us to do it. So five years from now, 0:12:15.760 --> 0:12:18.240 we'll have the next interview, Emily, and you'll say, are 0:12:18.280 --> 0:12:20.240 you still good for a decade? And I hope to 0:12:20.240 --> 0:12:22.880 be able to answer that question. Yes. So we have 0:12:22.920 --> 0:12:25.560 a date in five years there we go absolutely. Um, 0:12:25.640 --> 0:12:29.320 your strategy involves doing multiple things that Intel has never 0:12:29.360 --> 0:12:32.000 been able to pull off before at the same time 0:12:32.600 --> 0:12:35.400 moving into boundary for example, why do all of these 0:12:35.400 --> 0:12:39.120 things at once? These are reinforcing strategies. It's not like 0:12:39.200 --> 0:12:41.600 this one is in conflict or separate from the others, 0:12:41.600 --> 0:12:44.720 but they are making each other better. And let's talk 0:12:44.720 --> 0:12:47.960 about the foundry as an example of that. If I 0:12:48.000 --> 0:12:51.199 open my foundry doors up, that means I have customers 0:12:51.320 --> 0:12:56.080 benchmarking my process technology every day. Right, I'm not an 0:12:56.080 --> 0:12:59.200 internal guy anymore. Instead of just saying here's my chip 0:12:59.600 --> 0:13:02.439 or you and go to external foundries, I'm gonna say, 0:13:02.520 --> 0:13:05.160 let's go together and we'll bring some of your stuff, 0:13:05.200 --> 0:13:07.680 will optimize some of our stuff. Also, some of the 0:13:07.679 --> 0:13:10.080 new business areas that were launching. Hey, we've been in 0:13:10.320 --> 0:13:12.960 internal graphics forever. You know. Now we're going to do 0:13:13.080 --> 0:13:15.840 discrete graphics. We're gonna build on things that we're already 0:13:15.880 --> 0:13:19.040 doing and doing well. Now. Investors seem to be really 0:13:19.040 --> 0:13:22.080 excited about the ambition, the speed, the aggression, that the 0:13:22.160 --> 0:13:25.520 torrid pace, if you will, But they're not excited about 0:13:25.559 --> 0:13:28.000 how much it's going to cost. And they want to 0:13:28.000 --> 0:13:30.320 know about margins. And I know you've said five years 0:13:30.440 --> 0:13:33.840 that's when you know those historically high margins will return. 0:13:34.200 --> 0:13:35.719 That's right. It's going to be at a couple of 0:13:35.800 --> 0:13:39.520 years of investment. And I am proud of making those investments. 0:13:39.520 --> 0:13:43.160 We're not being managed on a quarterly Wall Street view right. 0:13:43.240 --> 0:13:46.360 We are investing for a long term return and I'm 0:13:46.400 --> 0:13:48.640 pretty darn proud of that. And you've budgeted up to 0:13:48.720 --> 0:13:52.680 twenty eight billion dollars here, but your rival Samsung t SMC, 0:13:52.720 --> 0:13:54.599 they're planning to spend way more than that. So is 0:13:54.600 --> 0:13:58.200 there a chance this could cost even more than you're planning. Well, 0:13:58.200 --> 0:14:00.280 what we've said, you know, we've said, you know, twenty 0:14:00.320 --> 0:14:03.120 eight billion four this year, and it could go up 0:14:03.679 --> 0:14:07.160 next year in the year after. This is big business, 0:14:07.280 --> 0:14:12.080 This is big capital investments. This is a big manufacturing expansion. 0:14:12.280 --> 0:14:15.079 We're pretty proud of the position. And boy, having doubled 0:14:15.080 --> 0:14:18.080 my you know, my capital investments here and year. Hey, 0:14:18.120 --> 0:14:21.000 we're not being bashful about the big steps forward that 0:14:21.040 --> 0:14:23.880 we're taking. And with the announcements that we've laid out, 0:14:23.920 --> 0:14:26.200 you know, we believe that we'll be back in fundamental 0:14:26.280 --> 0:14:30.720 process leadership. So I think I saw you wearing a 0:14:30.800 --> 0:14:33.680 Christmas sweater taking some shots at Lisa, Sue and a 0:14:33.880 --> 0:14:36.280 d I believe you said they're already in the rear 0:14:36.360 --> 0:14:38.600 view mirror. They're never going to be in the windshield again. 0:14:39.240 --> 0:14:41.880 I asked her about this, and she she said, you know, 0:14:41.960 --> 0:14:43.960 we're playing our own game. And we feel good about it. 0:14:44.080 --> 0:14:46.960 She didn't even say the word Intel. What's your reaction 0:14:47.000 --> 0:14:50.120 to that. Well, Lisa's done done a good job with 0:14:50.600 --> 0:14:53.800 a m D as a company, and hey, you know, 0:14:53.840 --> 0:14:55.880 I think we're back to a leadership position in the 0:14:55.880 --> 0:14:58.520 client and uh server. Hey, we've got a little bit 0:14:58.560 --> 0:15:01.520 more work to do, uh in that area. Is it 0:15:01.640 --> 0:15:05.600 possible the industries in an arms race that will lead 0:15:05.640 --> 0:15:08.680 to spending itself into an oversupply. I mean that has 0:15:08.720 --> 0:15:12.800 happened before. We we we've looked at this very carefully. 0:15:12.880 --> 0:15:17.920 And the digitization of everything. Tell me what aspect of 0:15:17.960 --> 0:15:21.560 your life, Emily, isn't becoming more digital? Well, I'm trying 0:15:21.600 --> 0:15:26.120 to prevent that. But yeah, you know, and COVID has 0:15:26.120 --> 0:15:30.760 accelerated that. The industry cost five billion dollars last year 0:15:30.960 --> 0:15:36.360 the semiconductor industry overall, and estimates are a trillion dollars 0:15:36.360 --> 0:15:39.360 a doubling by the end of the decade. At that point, 0:15:39.480 --> 0:15:42.120 I believe those estimates. It's not that there's not going 0:15:42.160 --> 0:15:44.560 to be some blips and turns on the way, and 0:15:44.600 --> 0:15:49.320 the majority of that is driven by leadership process technology, 0:15:49.560 --> 0:15:54.560 of which only three companies can satisfy that need. Intel Samsung, TSMC, 0:15:55.000 --> 0:15:58.480 and we are destined to grow faster than the market 0:15:58.520 --> 0:16:13.480 to accomplish that objective. Over that time, you're listening to 0:16:13.520 --> 0:16:17.640 my conversation with Pat Elsinger, Intel CEO up next. To 0:16:17.760 --> 0:16:20.960 regain the throne, Intel has to fend off stiff competition 0:16:21.000 --> 0:16:25.320 from rivals like TSMC and Samsung, companies that are getting 0:16:25.360 --> 0:16:29.280 significant funding support from their governments, and tech giants like 0:16:29.360 --> 0:16:33.920 Apple and Amazon boxing Intel out to design their own chips. 0:16:34.400 --> 0:16:38.160 Can Intel turn back the time? That's next? I'm Emily Chang, 0:16:38.400 --> 0:16:50.440 this is Bloomberg Studio. At one point, Oh, do you 0:16:50.480 --> 0:16:53.280 feel you're getting as much support as your Asian rivals 0:16:53.280 --> 0:16:55.960 are getting from their governments? You know, I think in 0:16:56.000 --> 0:16:59.640 the past clearly they've gotten more right, unquestionably, and I 0:16:59.680 --> 0:17:03.480 think we've seen over the last number of months is 0:17:03.520 --> 0:17:08.040 really that the entire political uh infrastructure in the US 0:17:08.080 --> 0:17:12.160 realizes how critical this is. This isn't just any industry, right, 0:17:12.640 --> 0:17:16.760 This is the heart of what the automotive industry needs, 0:17:16.800 --> 0:17:20.080 of what the industrial industry needs, what the medical industry needs, 0:17:20.080 --> 0:17:23.320 the consumer industry, the cloud industry. Every one of those 0:17:23.560 --> 0:17:28.720 relies on semiconductors. The national security relies on semiconductors. This 0:17:28.920 --> 0:17:32.480 is a priority for the nation. Well, speaking of national security, 0:17:32.520 --> 0:17:36.439 tension between the US and China is escalating daily. The 0:17:36.560 --> 0:17:39.520 US is your home market, China is your biggest market. 0:17:39.880 --> 0:17:43.800 Isn't that a risk to Intel's future? The US China 0:17:43.880 --> 0:17:47.159 relationship now very critical? Big market for US. So you 0:17:47.200 --> 0:17:51.360 know we're in China. We're navigating that carefully. US global 0:17:51.400 --> 0:17:53.800 market big important for US. And I'll say, you know, 0:17:53.880 --> 0:17:57.679 how do you navigate that carefully? Right? Requires you to 0:17:57.720 --> 0:18:00.800 be deaf, thoughtful, engaged with the police, dical leaders, the 0:18:00.840 --> 0:18:04.560 business leaders on both sides. Definitely consumes a lot of 0:18:04.560 --> 0:18:08.000 our energy and we have to navigate it well. Intel 0:18:08.280 --> 0:18:12.879 asked suppliers to avoid shin Jiong, an area that the 0:18:12.960 --> 0:18:16.440 US has accused China of human rights of issues, huge 0:18:16.440 --> 0:18:20.479 backlash from China. Intel apologized for the trouble that it caused. 0:18:20.720 --> 0:18:23.040 Why not stand up to China in that moment? If 0:18:23.080 --> 0:18:26.120 you believe human rights are at risk, but we don't 0:18:26.520 --> 0:18:28.960 know source out of Shinjion, You know, there's no reason 0:18:29.040 --> 0:18:31.399 for us to be calling one out over any other. 0:18:31.560 --> 0:18:34.280 We shouldn't be calling out individual things. You know, it's 0:18:34.320 --> 0:18:36.960 not our job. Right in that respect. We're here to 0:18:36.960 --> 0:18:40.720 build great chips, and we have a consistent global policy 0:18:41.200 --> 0:18:44.720 or with regard to human rights expectations of our suppliers, 0:18:44.920 --> 0:18:47.480 and that's what we've reinforced, and you know, we feel 0:18:47.520 --> 0:18:50.000 confident that that's the right way to balance the views 0:18:50.040 --> 0:18:53.200 that we would have across the globe in this regard. 0:18:53.480 --> 0:18:59.080 Your customers are starting to make their own silicon Microsoft, Apple, Amazon, Alphabet. 0:18:59.640 --> 0:19:02.520 How do turn back that trend? These companies are at 0:19:02.520 --> 0:19:04.720 such scale now I can say, oh, we can hire 0:19:04.720 --> 0:19:07.920 another hundred engineers. Let's go start a silicon project. And 0:19:08.240 --> 0:19:14.800 that's part of my foundry strategy as well. That's right, Google, Amazon, Microsoft, 0:19:15.560 --> 0:19:18.760 do it with us, right, come and use our foundry. 0:19:18.880 --> 0:19:20.880 And when you do that, you know, when you show 0:19:20.960 --> 0:19:23.760 up to use our foundry, right, we're going to allow 0:19:24.040 --> 0:19:27.200 our I P to be used by your designers. Or 0:19:27.320 --> 0:19:31.040 let's designed together, right, you know, and let's bring together 0:19:31.200 --> 0:19:34.920 your innovations with our innovations and our leading edge process 0:19:35.000 --> 0:19:40.480 technology and manufacturing capacity, so we are creating better products 0:19:40.480 --> 0:19:44.560 that meet your unique needs. Tim Cook, CEO of Apple, 0:19:44.840 --> 0:19:47.719 recently said on the earnings call that it's because of 0:19:47.760 --> 0:19:51.040 the Apple design chips that more customers are buying Max. 0:19:51.040 --> 0:19:55.040 That MAX sales went up for a year earlier. How 0:19:55.040 --> 0:19:57.920 does it feel if Intel is being designed out? Yeah, 0:19:58.119 --> 0:20:02.040 very sad because you know they designed a better chip 0:20:02.119 --> 0:20:05.160 for their purposes than we were giving to them. So 0:20:05.200 --> 0:20:08.920 what's my mantra to my team? Design a better chip? Right? 0:20:09.040 --> 0:20:13.520 We have to create products and technologies that Apple says, huh, 0:20:13.560 --> 0:20:15.520 that's better than I could have done myself. So you 0:20:15.560 --> 0:20:18.480 think you can get that business back? Oh yeah, if 0:20:18.480 --> 0:20:22.320 we do what I said, build better chips. Obviously, you know, 0:20:22.440 --> 0:20:25.920 winning the microprocessor back. You know they've made those decisions 0:20:25.960 --> 0:20:29.199 about every decade, you know, so I'm not expecting this. 0:20:29.280 --> 0:20:31.119 We have a number of years to get our act together. 0:20:31.200 --> 0:20:35.520 At that point, back you said Bitcoin was bad, design, 0:20:36.800 --> 0:20:41.919 extreme and climate intolerant. Do you still feel that way? Indeed, 0:20:41.960 --> 0:20:46.400 I do. A single ledger entry in bitcoin consumes enough 0:20:46.520 --> 0:20:50.120 energy to power your house for almost to day. That's 0:20:50.119 --> 0:20:52.800 a climate crisis right at that point. And the more 0:20:52.840 --> 0:20:56.280 you use it. So if we produce a technology that 0:20:56.520 --> 0:21:00.600 consumes that much energy, wow, that's not okay. And then 0:21:00.640 --> 0:21:02.399 you sort of say most of the uses when I 0:21:02.440 --> 0:21:04.560 said that, we're a listen, that doesn't mean it's not 0:21:04.600 --> 0:21:08.200 a good technology, but we're not using it good yet. Well, 0:21:08.359 --> 0:21:11.919 Intel's about to bring forward a blockchain chip. You know, 0:21:12.040 --> 0:21:16.840 that's dramatically better. What about the metaverse? What's how are 0:21:16.840 --> 0:21:19.520 you going to use the metaverse? Right? I don't know yet, 0:21:20.560 --> 0:21:22.639 you know, and I do think that there's going to 0:21:22.760 --> 0:21:25.560 be you know, a set of i'll say, business to 0:21:25.640 --> 0:21:30.240 business applications in the metaverse, as well as consumer applications. Well, 0:21:30.280 --> 0:21:33.520 in the consumer applications, the nearest embodiment of that would 0:21:33.600 --> 0:21:37.359 be advanced gaming. So many of our graphics initiatives and 0:21:37.440 --> 0:21:40.840 PC initiatives absolutely are going to place us in the metaverse. 0:21:41.080 --> 0:21:42.920 We're also going to help to build the back end 0:21:42.920 --> 0:21:46.320 cloud infrastructure for metaverse. We're moving into our lightning rounds. 0:21:46.480 --> 0:21:49.159 We are going to move at a torrid pace to 0:21:49.240 --> 0:21:53.160 be there's some rapid fire questions. Okay, um, I hear 0:21:53.200 --> 0:21:56.280 you were a late night radio DJ. Is that true? 0:21:56.400 --> 0:21:58.760 What were you spinning back in the day? Oh, this 0:21:58.840 --> 0:22:01.280 was easy listening to music? Can you give us your intro? 0:22:01.720 --> 0:22:06.240 This is Pat Gelsinger w FMZ Allentown. Good morning to 0:22:06.400 --> 0:22:10.960 everybody in the Lehigh Valley. I love it. Um, what's 0:22:11.000 --> 0:22:13.639 the latest TV? Show you've been. You know, we're running 0:22:13.640 --> 0:22:15.760 out of things to watch for my wife and Landa. 0:22:15.880 --> 0:22:18.360 So it was alias was our last been? Okay? Best 0:22:18.359 --> 0:22:20.080 piece of advice that you would give someone in their 0:22:20.080 --> 0:22:25.600 twenties relationships more important than results. Best piece of advice 0:22:25.600 --> 0:22:29.960 for someone in their forties. Mentors, how much does faith 0:22:30.000 --> 0:22:34.520 guide your decisions? Every day? Every way? I'm working for 0:22:34.600 --> 0:22:37.439 something much bigger and more important than just being the 0:22:37.440 --> 0:22:40.560 CEO of Intel. Speaking of that, you have how many 0:22:40.600 --> 0:22:45.880 kids these days? Four kids, grandkids, grandkids? Are you getting 0:22:45.880 --> 0:22:48.679 tapped to babysit? We're with the kids or have the 0:22:48.760 --> 0:22:52.320 kids most weekends right between three different families. You know 0:22:52.359 --> 0:22:55.200 my wife, you know she is like Grammy of the year, 0:22:55.280 --> 0:22:57.600 if not the century. How do you do that? NVS 0:22:57.600 --> 0:23:02.240