Most of the processors are currently manufactured in the region, with Taiwan’s TSMC and South Koreas Samsung being the dominant players.
Intel, based in the United States, plans to establish a new division to manufacture chips for other companies based on their own designs.
Until now, its focus has been on manufacturing its own chips in its factories all over the world.
Pat Gelsinger said that Intel will invest $ 20 billion in two new plants in Arizona, in addition to a major expansion of an existing Irish facility in Kildare County.
“Having 80% of total supply in Asia is not simply a palatable way for the world to see the most important technology,” Gelsinger added.
“Every smart phone, every telemedicine, every remote operator, every tele-education, every independent vehicle, every aspect of humanity becomes more digital … and when it becomes digital, it works on semiconductors.”
“This is the heart of every aspect of human existence going forward, and the world needs a more balanced supply chain to achieve this. We are intervening,” he explained.
And he added that Intel also plans to build an additional workshop for manufacturing chips in a European country, but its exact location will not be determined.
While these moves would be too late to address the current chip shortage, which has caused problems for car makers and others, they could help the West avert a future crisis.
Politicians in the United States and the European Union have called for building more chip factories locally.
This is partly due to concerns that Beijing aims to reunify mainland China with Taiwan, while North Korea poses a threat to its southern neighbor.
However, Intel has repeatedly missed its industrialization targets in recent years.
As a result, the latest desktop processors use older transistor technology than competing silicon from AMD and Apple, which puts the elements at a disadvantage.
Gelsinger must now prove that his company has put these problems behind if the new business is to thrive.
The 60-year-old returned to Intel last month, only after his predecessor was toppled over concerns about the company’s declining market share, among other problems.
But earlier in his career, Gelsinger spent three decades at Intel, including his role as its first technical officer.
An activist investor had pressured him to go “less productive”, dismantling Intel factories to focus on chip designs.
Instead, Gelsinger chose what appeared to be a tougher challenge in order to restore the company to its past glories.
This includes allowing customers to order chips that blend their proprietary technologies and some proprietary Intel architectures for an additional fee.
“We are putting everything on the table,” he said.