Are semiconductor chips the new oil?

After chip shortages wreaked havoc on several industries, the U.S. made pointed efforts to invest in the semiconductor industry. But with these new developments comes the question: will the chip industry will be the new oil?

For most of the twentieth century, geopolitics has been defined by oil production. But with mounting concerns over climate change and growing calls for a transition to clean energy dominance, oil may soon be replaced in terms of its global impact. 

Intel CEO Pat Gelsinger spoke with "Mornings with Maria" host Maria Bartiromo on Tuesday while at the World Economic Forum, where he argued chips are "critical to every aspect of human existence."

"Everything is becoming more and more digital and everything digital runs on semiconductors. So this is critical to every aspect of human existence," he said. "Where the oil reserves are [located] defined geopolitics for the last five decades; where the technology supply chains and semiconductors are located will define geopolitics for the next five. It's that important."

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Products that use these chips - including smartphones, appliances, and automobiles - saturate the consumer market, their prevalence in modern society making them an undeniable asset. The U.S. and Europe have increased investments in domestic chip production as economies look to reduce dependence on Taiwan.

According to data from the Semiconductor Industry Association, U.S. businesses have invested roughly $200 billion in 40 separate projects, adding an estimated 40,000 jobs. 

In addition to private businesses investing in the industry, the federal government has also made large contributions to the semiconductor industry through the CHIPS and Science Act.

"The CHIPS and Science Act was a clear statement that we are going to win back the semiconductor industry, we are going to be manufacturing it," Gelsinger said on "Mornings with Maria" Tuesday. 

"And many of those elements are for health care, are for A.I., for long-term leadership. So I'm a real optimistic here that our approach to being this open, collaborative, innovative society, The rebuilding of key manufacturing and semiconductor industry is that underlayment for it… I think the future is very bright, and we've seen the most significant step through the CHIPS Act to help make that happen."

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In August 2022, Congress approved $52.7 billion for semiconductor manufacturing and research and a 25% investment tax credit for chip plants that is estimated to be worth $24 billion.

The legislation aims to improve competition with China by strengthening U.S. manufacturing, supply chains and national security, and investing in research and development, science and technology.

Gelsinger emphasized developments in the U.S. semiconductor and technology industries are investments for the "long term" that will manifest in the second half of the decade.

"A three-quarter economic cycle should not dictate a five-year capital build-out plan. You just can't make those decisions. And we see semiconductors doubling this decade. So I need to be building the capacity for that," he said Tuesday.

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"So we need the support of the financial sector to go do that. We need the support of our public-private partnerships with government to go do that. And we are underway making some big long-term bets on the future of the technology industry."

FOX Business' Landon Mion contributed to this report.