For years, the rivalry between Intel Corp (INTC) and Taiwan Semiconductor Manufacturing Company Ltd. (TSM) has been all about who can etch the tiniest transistors, who wins the process-node race, and who cranks out the most wafers. But former Intel CEO Pat Gelsinger thinks investors might be missing a much bigger advantage: where those factories are actually located.

Speaking at a recent event, Gelsinger dropped a warning that sounds almost like a disaster-movie pitch. Taiwan, he pointed out, relies heavily on imported energy and holds less than three weeks of reserves. A prolonged blockade—no shots fired, just a naval cordon—could shut down the island's chip fabs entirely. And here's the kicker: "When you turn off a fab, it doesn't come back on for 90 days," Gelsinger said. He added that "the economic impact of a brown out of Taiwan is greater than the Great Depression."

That's not a knock on TSMC's technical prowess. TSMC remains the undisputed king of leading-edge chips, making the brains inside products from Nvidia Corp (NVDA), Apple Inc. (AAPL), Advanced Micro Devices, Inc. (AMD), and Qualcomm Inc (QCOM). But that concentration has long been the semiconductor industry's biggest geopolitical headache. Investors tend to focus on the risk of a military conflict across the Taiwan Strait. Gelsinger's point is simpler: you don't need a war to break the supply chain—just an energy blockade.

This is where Intel's foundry strategy comes into focus. Under current CEO Lip-Bu Tan, Intel has been pouring money into advanced manufacturing capacity in the U.S. and Europe. The company still trails TSMC in some areas of leading-edge production, but the bet is that customers will increasingly value supply-chain resilience alongside pure performance and cost. The pandemic taught everyone a harsh lesson about concentrated supply chains. Government programs like the U.S. CHIPS Act were designed to encourage exactly this kind of geographic diversification.

Gelsinger's warning reinforces that trend. If chip buyers start putting a premium on manufacturing closer to home—or at least spread across multiple regions—Intel's domestic footprint could become a much more valuable competitive asset than traditional technology comparisons suggest. That doesn't mean Intel would benefit from a disruption in Taiwan. A prolonged shutdown at TSMC would ripple through the entire industry, hurting suppliers, customers, and chipmakers alike. But it does underscore a shift investors may need to start taking seriously. The next chapter of semiconductor competition may not be decided solely by who builds the fastest chips. It could also hinge on who can offer the most resilient supply chain.