I Asked Experts Why Carmakers Can’t Just Transition To Newer Chips In Stock. Here’s What They Told Me
2nd October 2021
“I’ll make them as many Intel 16 [nanometer] chips as they want,” Intel chief executive Pat Gelsinger told Fortune last week during his visit to an auto industry trade show in Germany.
Carmakers have bombarded him with requests to invest in brand-new production capacity for semiconductors featuring designs that, at best, were state of the art when the first Apple iPhone launched.
“It just makes no economic or strategic sense,” said Gelsinger, who came to the auto show to convince carmakers they need to let go of the distant past. “Rather than spending billions on new ‘old’ fabs, let’s spend millions to help migrate designs to modern ones.”
And, unlike the government, they can’t just charge the taxpayers for the added expense.