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Speaker 1: No questions on shaman power. No questions on shaman power.

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Speaker 1: So t talk to me about de globalization. How compatible

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Speaker 1: is deglobalization with the chip industry and it's modern fall.

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Speaker 2: Well, ever since we started this journey of you know,

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Speaker 2: bringing the US Chips and the EU Chips Act to place,

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Speaker 2: it was all about building resilient supply chains. And we said,

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Speaker 2: for something so critical, and I ask all the time,

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Speaker 2: you know, what aspect of your life is not becoming

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Speaker 2: more digital? Everything is and everything digital runs on semiconductors

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Speaker 2: and through COVID, we saw the fragility of our supply chains.

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Speaker 2: You know, we're one port, one island, and because of that,

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Speaker 2: we said, we need a balanced supply chain for the world.

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Speaker 2: And that's what we're off to do, is to rebuild

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Speaker 2: the Americas and the European supply chain for semiconductors. So, hey,

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Speaker 2: we're all better off, right, we have better jobs, we

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Speaker 2: have better national security, better economic and we're ready for

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Speaker 2: a turbulent world. And with two wars active today and

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Speaker 2: you know, different countries and different political and geopolitical concerns,

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Speaker 2: this is critical for the future.

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Speaker 3: Let's talk about the Chips Act.

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Speaker 1: Can you just walk our audience through, particularly the audience

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Speaker 1: outside of the United States. Well, that is how big

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Speaker 1: it is and whether you've actually received anything from it yet.

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Speaker 3: Yeah. So the Chips Act fifty two billion dollars.

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Speaker 2: Some of that was capital offsets, some of that was

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Speaker 2: long term R and D, you know, and it was

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Speaker 2: parallel by the EU Chips Act, right, it was about

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Speaker 2: forty five billion euros, so very similar constructs and what

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Speaker 2: it was saying, huh, we never voted to get rid

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Speaker 2: of this industry, this critical industry for the future, but

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Speaker 2: Asian economies voted to get it. And as a result,

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Speaker 2: we're no longer competitive in US and in Europe. So

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Speaker 2: let's create a leveling and long term incentives to invest

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Speaker 2: in this industry.

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Speaker 3: And that's what the Chips Act is doing.

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Speaker 2: And you know, Commerce set up their department dgcomm for

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Speaker 2: the EU Commission is now underway, and we have projects

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Speaker 2: in the US and projects in Europe to take advantage

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Speaker 2: of that, and they're in the latter stages. As I say, boy,

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Speaker 2: you know, I'm ready, I'm building factories today.

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Speaker 3: You know, let's go.

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Speaker 4: Can you quantify though, to John's point, how much Intel

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Speaker 4: is receiving from the Chips Act. Can you quantify how

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Speaker 4: much cheaper it really would make manufacturing in the US

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Speaker 4: for you.

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Speaker 2: Well, you know what we said is and you know,

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Speaker 2: industry analysis like the Semiconductor Industry Association in the US,

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Speaker 2: similar studies done by BCG and others have said it's

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Speaker 2: thirty to forty percent cheaper to build in Asia, right,

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Speaker 2: because you know taxes, tariffs, incentives, labor, you know, the

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Speaker 2: supply chains, and the Chips Act is designed to close

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Speaker 2: that gap. So if you're building a twenty billion dollar facility,

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Speaker 2: you're thirty to forty percent uncompetitive without some of these

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Speaker 2: economic capabilities being put in place. And that's what the

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Speaker 2: US and European Chips Act are doing, bringing those so

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Speaker 2: that when we make enormous and these facilities you know,

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Speaker 2: and the one we're doing in Germany.

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Speaker 3: You know, it's well over thirty billion euros.

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Speaker 2: This is huge and I can't be uncompetitive to that

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Speaker 2: degree and expect to compete in the world market effectively.

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Speaker 4: There's a question when you talk about supply chains of

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Speaker 4: a foundry that you're building and who's going to be

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Speaker 4: building their chips with you, Right, it's not just about

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Speaker 4: your chips anymore. Have you had any real conversations with

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Speaker 4: the Amazons of the world, with the Apples of the world,

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Speaker 4: with Nvidia about manufacturing some of their chips.

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Speaker 2: Yeah, we've had lots of conversations with them, and we've

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Speaker 2: started to close design wins with different ones.

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Speaker 3: And for the most.

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Speaker 2: Part, it's not the industry practice for them to say

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Speaker 2: their name because they already have relationships with others in

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Speaker 2: that regard and they somewhat view it as competitive intelligence

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Speaker 2: as well. But as we've announced, we've now have three

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Speaker 2: major foundry customers for our most advanced process technology. We've

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Speaker 2: now announced multiple advanced packaging customers as well, and my

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Speaker 2: earnings call is next week and we'll be updating on

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Speaker 2: both of those as we come up on the earnings call.

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Speaker 2: So we're making good, solid progress for industry engagement. We

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Speaker 2: have tens of chips test chips as they're called, that'll

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Speaker 2: be going into the factories in the next few months

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Speaker 2: here from different potential customers as well. If I'll say,

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Speaker 2: momentum is building for us to become that Western foundry

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Speaker 2: for the world.

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Speaker 1: The political attention this industry has gone over the last

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Speaker 1: few years has been phenomenal. I remember when Rex Tellison

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Speaker 1: got the job of the State Department coming off the

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Speaker 1: back of this work at Exxon, and it was a

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Speaker 1: view that he was the ultimate diplomat because he had

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Speaker 1: to deal with governments all around the world. And I

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Speaker 1: now think of people in your industry as the ultimate diplomats.

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Speaker 1: Have you had to become a politician over the last

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Speaker 1: few years.

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Speaker 2: Well, my day job is running Intel, and you know,

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Speaker 2: with that, making sure we rebuild our process leadership, our

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Speaker 2: product engineering, rebuilding our customer relationships. But I've had to

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Speaker 2: spend a lot more time in Brussels and in the

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Speaker 2: Capitol Hill right on these topics. Then I certainly would

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Speaker 2: have been visioned right when I took the job. But

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Speaker 2: it's been fulfilling as well, because I think we've created

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Speaker 2: the two most significant pieces of industrial policies since World

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Speaker 2: War Two. We've accomplished that in the last couple of years,

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Speaker 2: and I think fundamentally we are rebuilding the supply chains

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Speaker 2: of the West.

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Speaker 3: I'm proud of that.

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Speaker 4: Well, you talk about Europe and you mentioned building in

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Speaker 4: the US, and you threw Europe in, and I kept wondering,

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Speaker 4: where's the European Chips Act? Right? How much cheaper is

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Speaker 4: it to develop in the US now than the Europe.

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Speaker 4: How much does the Europe lack that competitive edge that

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Speaker 4: it might have had.

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Speaker 2: The gaps between US and Asia and Europe and Asia

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Speaker 2: are similar, right, and this thirty to forty percent is

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Speaker 2: sort of a good thumb in the air, you know,

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Speaker 2: for that to competitiveness. So we're not trying to say

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Speaker 2: it's US versus Europe. It's US and Europe to be

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Speaker 2: competitive with Asia, because if we were here in nineteen ninety,

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Speaker 2: eighty percent was built in US and Europe.

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Speaker 3: Now it's twenty percent.

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Speaker 4: But Europe doesn't have a Chips Act, So I'm wondering

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Speaker 4: it does the U Chips Act comp commensurate? Does it?

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Speaker 3: Does it composite you enough?

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Speaker 2: Absolutely, you know, and we feel good with that in

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Speaker 2: our proposals for Poland and Germany, you know, the two

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Speaker 2: big projects that we've announced we'll soon be going through

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Speaker 2: the d g komp process. I just met with Commissioner

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Speaker 2: Vestager last week, you know, and we discussed those proposals

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Speaker 2: coming forward from Germany bringing it forward and Poland bringing

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Speaker 2: it forward. So you know, we're expecting those to come

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Speaker 2: to fruition quickly and get the big you know, Magdeburg

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Speaker 2: project underway and the big row Claw project underway. We're

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Speaker 2: quite excited and it builds on what we're doing already

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Speaker 2: in Ireland right which is making good progress, and what

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Speaker 2: we're already doing in Israel