Return to Transcripts main page

First Move with Julia Chatterley

Israeli Military Says It's Now Killed Dozens Of Terrorists At Al- Shifa Hospital; IDF Operating Entering Its Fourth Day; Antony Blinken Visits Saudi Arabia; Appeals Court Pauses Texas Immigration Law; Princess Kate's Potential Hospital Records Breach; U.S. Stocks Rising After Fed Meeting; Ryanair CEO On Boeing Safety Concerns; Boeing Responds On Quality Issues; Far-Right Israelis Pushing For A Return To Gaza; Biden Announcing Billions Of Dollars Of Grants And Loans To Intel; Intel CEO Pat Gelsinger On A.I. Chip Outlook; Intel CEO Pat Gelsinger On New U.S. Chip Push; Shohei Ohtani Helps Dodgers To A Season Open Victory. Aired 6-7p ET

Aired March 20, 2024 - 18:00   ET




UNIDENTIFIED FEMALE: The fact that a journalist knew my true CIA affiliation, or somehow was put onto it, whether it was confirmed or not,

was deeply unsettling to me.


JAKE TAPPER, CNN HOST: The last episode from the season finale of the "United States of Scandal" airs Sunday night at 9:00 Eastern and Pacific.

JULIA CHATTERLEY, CNN HOST, FIRST MOVE: It's 7:00 a.m. in Seoul, 10:00 p.m. in London, and 6:00 p.m. here in New York. I'm Julia Chatterley. And

wherever you are in the world, this is your "First Move."

A warm welcome once again to "First Move." And here's today's need to know. The Israeli military says it's now killed dozens of terrorists at the

largest hospital in Gaza. IDF operations have now entered a fourth day.

In Texas, just hours after the state was given authority to arrest and deport migrants, an Appeals Court removed it. What next for the pivotal

board of battle?

President Biden announcing billions of dollars' worth of grants and loans to chip giant Intel. We've got all the intel from the company's CEO, Pat


And --


UNIDENTIFIED MALE: Rips one and he gets on top of it. That's Shohei Ohtani's first hit of 2024.


CHATTERLEY: Hooray. A Seoul sensation. Baseball superstar Shohei Ohtani helps the L.A. Dodgers to a season open victory. All that and plenty more

coming up.

But first, Hamas describing Israel's response to its ceasefire proposal as "negative in general." Israeli Prime Minister Benjamin Netanyahu who

already called the Hamas plan "unrealistic and absurd"

Yet, international diplomatic efforts continue towards reaching some kind of ceasefire deal. U S. Secretary of State Antony Blinken is now in Saudi

Arabia. He's scheduled to visit Egypt on Thursday.

Meanwhile, the Israeli military claims it's killed 90 people it describes as terrorists during operations at the Al-Shifa Hospital. The raids on

Gaza's largest hospital began on Monday, with the IDF saying senior Hamas leaders were using the facility.

Nada Bashir has the very latest. And I should warn you, her report does contain scenes you might find disturbing.


NADA BASHIR, CNN CORRESPONDENT (voice-over): I only left to find flour, to find food, this woman screams. Where are they her? Husband children and

other relatives are nowhere to be found. Their home destroyed in an Israeli airstrike while she was gone.

Moments later, her nephew is pulled from the rubble. But he is barely clinging on to life.

In Central Gaza, as bombs continue to rain down so do these foreboding leaflets. A warning from the Israeli military for civilians to flee

southwards directed at those living in the Al-Rimal neighborhood and the thousands currently sheltering in the nearby Al-Shifa Hospital complex.

This was the scene at the beleaguered medical complex on Monday. The alarming sound of artillery fire echoing through the early hours of the


Nobody has been able to reach those injured or killed at Al-Shifa, this eyewitness says, filming discreetly.

Some 3,000 people are believed to have been sheltering in and around the hospital when the raid began, according to the Palestinian Health Ministry.

Israeli military vehicles seen here in video filmed by a doctor in the hospital have surrounded the complex for days. On Tuesday, one civilian

trapped inside sent CNN this audio recording.

The hospital is still under bombardment. There has been heavy shelling and live fire, Lamya says. One man was just looking out of the window on the

second floor when he was hit by sniper and killed.

The Israeli military says it is conducting what it has described as a precise military operation targeting senior Hamas militants operating

within the hospital complex.

Israeli Military spokesman Daniel Hagari accused Hamas on Monday of using the hospital as command center. It is the very same claim made by the IDF

ahead of its raid on Al-Shifa back in November.

On Monday, the IDF released this video showing a safe full of cash, an envelope with Hamas and Islamic jihad insignia and a series of weapons,

presented as evidence to justify its raid on the hospital.


But much like the IDF raid in November, little other evidence was provided to prove the presence of a Hamas command center at the Al-Shifa Hospital.

Hamas' military wing, meanwhile, has acknowledged that its fighters have been engaged in fierce clashes with Israeli troops in the area surrounding

the hospital. Adding that Gaza's civil police chief, Fayek al-Mabhouh, who led the coordination of food and aid deliveries to the Strip, was killed

during the raid.

In a statement, the IDF said Wednesday that approximately 90 "terrorists" were killed, including al-Mabhouh. The IDF also maintained that no harm had

been inflicted on civilians or medical staff in the hospital. But testimonies from Palestinians inside Al-Shifa tell a very different story.

We were informed by the Israelis that anyone moving within the hospital or around the hospital complex would be targeted by snipers, this medical

student says. We can't leave the building to treat those injured outside. Some families attempted to leave, but they were targeted and killed.

Those who have been able to leave Central Gaza are now forced to make the uncertain journey south, with no guarantee of protection or survival.

Stripped to their underwear and barefoot, these young boys say they are thankful just to have escaped with their lives. Recounting their harrowing

experience, they say they were met with Israeli tanks and forced into an open square where they were interrogated and ordered to undress. Other men

around them, they say, were killed.

Many evacuees have been badly wounded. Limp, bloodied bodies are carried by cart. But there is little care available in the south anymore. And there is

no telling whether these men, like so many others, will survive.

Nada Bashir, CNN, London.


CHATTERLEY: Back on hold, a U.S. Federal Appeals Court has temporarily halted Texas' controversial immigration law just hours after the Supreme

Court allowed for the state to enforce the measure. The law, called SB4, would let state officials arrest people they suspect of entering the

country illegally and order deportations.

Ed Lavandera joins us now. Ed, our regular viewers will know that you and I were talking yesterday about the sheer level of confusion, I think, can

concern this decision by the Supreme Court created. And then just within a few hours, all halted again. Now, what?

ED LAVANDERA, CNN SENIOR U.S. NATIONAL CORRESPONDENT: Yes. It's a bit of legal whiplash that we have been enduring on this story for the last

several days.

So, right now, as it stands, when we spoke yesterday, the law was allowed by the U.S. Supreme Court ordered to be able to go into effect. That has

changed. There were a court hearing this morning where both sides were hashing out legal arguments to try to get this law back into effect while

the lawsuit continues to play out in federal court here in the U.S., but we still have not heard the latest ruling from a lower court determining

whether or not this controversial Texas law will be able to continue. So, stay tuned on that front.

But the confusion has really kind of heightened here as the reality of this law kind of sinks in for law enforcement agencies across the state. As you

mentioned off the top there, what is unique about this law and so controversial is that it gives local law enforcement agencies, city,

police, county, sheriff's departments, the ability to essentially enforce immigration laws, which its critics say has been the purview of federal

immigration officers for 100 years.

And so, we have spoken and reached out to a wide range of police chiefs and sheriffs all across the state. And the overwhelming thing that we've heard,

Julia, throughout the day is that there is not a real lot of interest in solely arresting people for the violation of not having immigration

documentation and to be able to be here in the State of Texas. Local law enforcement officers are saying they think that that should remain in the

hands of federal law enforcement officials.


RYAN URRUTIA, COMMANDER, EL PASO COUNTY SHERIFF'S DEPARTMENT: We really would want them to do their job. You know, we want them to step forward and

handle that portion of which they're responsible for. And throwing local law enforcement into this is problematic.

You know, we're seeing a federal agency stretch to its limits and they have far greater resources and greater manpower than we do.



LAVANDERA: And so, Julia, one of the interesting things that came out in the hearing today is that there appeared to be some willingness or some

openness on part of some of the judges to allow parts of the Texas law to go into effect while other parts are more deeply scrutinized. We'll see how

that, you know, plays out in the coming days or hours as this story has been changing so dramatically.

The other caveat in all of this is that even if Texas is allowed to deport migrants, Mexico is saying that they will not accept anyone deported by the

State of Texas across the border into Mexico. So, that's another wrinkle of confusion and chaos that exists in all of this. Julia.

CHATTERLEY: Yes. And as you and I were discussing, not all of these people originated in Mexico. They can have originated from other countries as

well. So, it's far more problematic.

LAVANDERA: Excellent points, yes.

CHATTERLEY: But fascinating to hear from local law enforcement as well about what they think on this and their ability to handle this too, vitally

important. Ed, great to have you. Thank you. Ed Lavandera there.

Now, first, it was a doctored photograph, then a stop at the shops, and now a potential hospital records breach. As I know, you'll be well aware,

Catherine, Princess of Wales, had abdominal surgery at a London hospital back in January.

Well, now there are reports that a staff member may have tried to access her private medical records and allegedly breaking confidentiality rules in

the process. Max Foster has more.


MAX FOSTER, CNN ROYAL CORRESPONDENT (voice-over): Another day, another princess headline. This one alleging medical staff tried to illegally

access her records while she was there to undergo surgery at this private London clinic.

The country's data watchdog now says it's assessing a breach of confidentiality reported in the Daily Mirror. The British tabloid reported

that at least one hospital staffer allegedly tried to illegally access Kate's private medical records while she spent 13 nights at the London

Clinic Hospital in January after planned abdominal surgery.

The Mirror says the hospital informed the palace and launched a probe into the allegations. And in a statement to CNN, the U.K.'s Information

Commissioner's office said, we can confirm that we've received a breach report and are assessing the information provided.

On Wednesday, the U.K.'s Health Minister, Maria Caulfield, warned that hospital staff could face prosecution.

MARIA CAULFIELD, BRITISH MINISTER FOR MENTAL HEALTH AND WOMEN'S HEALTH STRATEGY: You're only allowed to access the patient notes you're caring for

and with their permission, and there's really strict rules. The Information Commissioner would take enforcement action against trusts or primary care

practices, but also as individual practitioners, your regulatory body. So, for me, it would be the NMC would take action as well. So, it's pretty


FOSTER (voice-over): It's another blow for the princess and the palace that's been protecting her privacy fiercely during her recovery. They've

released minimal information, which has sparked wild speculation about her true condition and whereabouts.

UNIDENTIFIED FEMALE: Wherever she is, I hope she's fine and well. I think that there are a lot more pressing things that people should be putting

their attention towards.

UNIDENTIFIED MALE: I think it's shocking, and I think they should leave her alone and the royal family alone.

FOSTER (voice-over): On Tuesday, another U.K. newspaper, The Sun, published a video taken by a member of the public showing a smiling Kate walking from

a farm shop alongside her husband, Prince William. Kensington Palace has referred all questions over the hospital breach to the London Clinic.

In a statement, the CEO of the hospital, Al Russell, said, in the case of any breach, all appropriate investigatory, regulatory, and disciplinary

steps will be taken. There's no place at our hospital for those who intentionally breach the trust of any of our patients or colleagues.

Max Foster, CNN London.


CHATTERLEY: I like that comment, wherever she is, we hope she's well and we wish her well.

All right, coming up, you're up to the minute weather forecast just ahead.

Plus, a who's who of CEOs on deck. And I speak to Intel CEO Pat Gelsinger about his firm's major U.S. expansion plans and the outlook for artificial

intelligence. His message to chip sector competitors and also potential clients, we're open for business.

And right after this, Ryanair CEO Michael O'Leary discussing the quality control crisis at Boeing. Good news for flyers. He says the situation is




CHATTERLEY: Welcome back to "First Move." And a very good Wednesday evening to all our first movies in the U.S., U.K., and across Latin America. And if

you're just waking up with us, a very happy Thursday.

We have a post-Fed meeting relief rally with the S&P 500 crossing the 5,200 mark for the very first time to kick off today's "Money Move." And you can

see it there.

The DOW also hitting records, all because the dots stayed on the plot. I'll explain. Most Fed policymakers still anticipating three rate cuts later

this year and they're updated what we call the dot plot chart. Now, despite their decision, of course, to raise growth forecast and lower unemployment

forecast, there had been fears that members would reduce the number of expected cuts this year given recent high or higher inflation data.

But no, Fed chair, Jerome Powell, reiterating that the next move is likely lower, but it wouldn't be drawn on when.


JEROME POWELL, U.S. FEDERAL RESERVE CHAIR: We believe that our policy rate is likely at its peak for this tightening cycle, and that if the economy

evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.

The economic outlook is uncertain, however, and we remain highly attentive to inflation risks. We are prepared to maintain the current target range

for the federal funds rate for longer, if appropriate.


CHATTERLEY: Data watching mode. Now, also today, big news in the U.S. IPO market. The social media site, Reddit, has priced its IPO near the top of

its expected range at $34 per share, valuing the company at almost $6.5 billion. Reddit stock is expected to be trading on Wall Street on Thursday.

Now, never want to mince his words, Michael O'Leary, the CEO of Ryanair, showed some support for Boeing today as the plane maker tries to push past

multiple quality control issues.

Tools left under floorboards and missing seat handles were just a couple of issues the budget carrier flanked on new planes last year. He told our

Richard Quest, while the situation is improving, a delivery shortfall will constrain growth and that means passengers should expect to pay more.


MICHAEL O'LEARY, CEO, RYANAIR: We're in daily dialogue with Dave Calhoun, Brian West, the CFO. I have confidence in those guys. I think they're

getting their arms around us. I think the situation in Boeing is improving, but there is no doubt that somewhat we're facing delivery delays, which

will constrain Ryanair's growth this year. Instead of carrying 205 million passengers, I think we're heading for someone between 198, 200 million.

RICHARD QUEST, CNN ANCHOR: Right. You also said that there will be an increase in fares as a result. Why?

O'LEARY: Well, 20 percent of the airbus fleet this summer is going to be grounded. Boeing are suffering delivery delays. So, Europe will not return

to its 2019 pre-COVID capacity. And if -- you know, whereas demand has returned, demand is strong. So, if you have constrained supply, strong

demand, I think it's inevitable that you're going to see airfares bump up again this summer, I think between 5 and 10 percent.


QUEST: And you were telling us earlier about sometimes when you do get a new plane, what you find at the --

O'LEARY: Yes. I mean, we now have -- we have about 24 engineers in Seattle monitoring the production, but when we take delivery of an aircraft into

Dublin, we spend 48 hours going through the plane, checking it for errors, omissions, or anything else.

I mean, you know, last year in 2022 and 2020, we were finding little things like spanners on the floorboards, in some cases, seat handles missing,

things like that. It shows, I think, a lack of attention to detail, quality issues in Boeing. No, nothing big, nothing major.

But, you know, that's part of our surveillance of the Boeing system and we're not willing to put an aircraft into service in Reiner unless we've

fully satisfied that everything is there and as it should be.

QUEST: And you've made your views clear.

O'LEARY: Yes, yes. I mean, to -- you know, to Boeing at the most senior levels, we've been saying for 18 months, both publicly and privately to

Boeing, that quality control post-COVID since they got by making aircraft has not been acceptable and it needs to be improved. Boeing now accept that

that's the case. The FAA now accept that that's the case. And I think that's good overall for customers and for consumers, even if it means some

aircraft delivery delays this year.


CHATTERLEY: And for balance, Boeing had this to say in response, we are squarely focused on implementing changes to strengthen quality across our

production system and taking the necessary time to deliver high quality airplanes that meet all regulatory requirements. We continue to stay in

close contact with our customers about these issues and our actions to address them.

Now, there's heavy rain damaging gusts and flooding in store for Northern Australia as Former Cyclone Megan weakens to a tropical low. Inland parts

of the Northern Territory are set to bear the brunt of that now for days. With that and the rest of the weather forecast, here is Chad Meyers. Chad,

welcome. Give us the bad news.

CHAD MYERS, CNN METEOROLOGIST: Well, I don't know if it's bad news or not. This could cause what they call a super bloom in the desert. We don't get a

lot of rainfall, about 235 millimeters of rainfall per year in areas that may see that over the next 72 hours. And we have spores in the ground and

there are plants that are just waiting for a very heavy rainfall to say, hey, look at me. Here's some more seeds. Look at my flowers. I know you

haven't seen it for 10 years, but they're still here. So, we'll have to see. Maybe that's another story for maybe three or four weeks from now when

those plants do absorb all of this rainfall.

And there are places here that could pick up 200 millimeters of rain in the next 72 hours. And everywhere you see that this is red around the town

there of Alice Springs, that's a desert, a major desert location where the annual average rainfall, 285 millimeters, and it's going to rain for the

next four days. It's going to stay cool, but it's going to rain for the next four days.

Now, for you F1 fans, that rain is not going to get to Melbourne. There's no chance of that. It's going to be a beautiful few days in a row. FP1, 2,

3, all going to have lots of sunshine. Even temperatures tomorrow for Melbourne, all the way to 21. And for race day, somewhere between 21 and 22

with lots of sunshine. Even that chance of a shower on Saturday that I saw yesterday doesn't even look likely now.

Temperatures look really nice here in parts of China. In fact, 10 degrees above normal. It's still snowing in the western prefectures of Japan. This

just -- I'm not sure this is going to stop until June. Now, it's still going to be a cool day in Tokyo today and not snow in Tokyo. But Nagano and

those areas there, elevations above 2,000, 3,000 meters, you're going to get significant amounts of snow still where Tokyo, you're still going to

only be in the single digits. But look, by the weekend all the way above normal for the first time in a while. Julia.

CHATTERLEY: Chad, I'm so over snow. Snow was so one day.

MYERS: You are not. You are Ms. Snow.

CHATTERLEY: Now, I'm all about the super bloom. Can we please have that voice again? You were --

MYERS: Well, I'll work on that.

CHATTERLEY: You were pretending to be a flower, super bloom. Chad Myers --

MYERS: Here's my pollen.

CHATTERLEY: Thank you for that.

MYERS: You bet.

CHATTERLEY: We're back after this. Stay with us.



CHATTERLEY: Welcome back to "First Move." And a look at more of the international headlines this hour. The U.S. is evacuating Americans from

Haiti's capital Port-au-Prince to neighboring Dominican Republic. The State Department hasn't shared exact details of the helicopter-led operation, but

the Dominican presidency says it's helped get 300 people to safety.

Gang violence has escalated in Haiti in recent weeks, with the U.N. estimating 80 percent of Port-au-Prince currently controlled by gangs.

Former U.S. President Donald Trump can officially appeal the decision to keep prosecutor Fani Willis on the election's subversion case against him

in Georgia. It's because a judge has now given the green light. That same judge ruled last week to keep Willis on the prosecution team. It's now up

to the Georgia Court of Appeals to decide if it wants to take up the case.

In a surprise move, Ireland's prime minister has announced he'll be stepping down. Leo Varadkar first took office back in 2017, becoming the

nation's youngest premier and the country's first openly gay leader. His resignation sets up a battle for his party's leadership ahead of the party

conference early next month.

And almost two decades ago, Israel left the Gaza Strip and evicted settlers who didn't leave voluntarily. Now, in the wake of the October 7th attack,

far-right Israelis are pushing for a return to the settlements of Gush Katif. Clarissa Ward reports from the West Bank.


CLARISSA WARD, CNN CHIEF INTERNATIONAL CORRESPONDENT (voice-over): High in the hills of the occupied West Bank, a flag flies in the face of a

Palestinian village. God is king, it says.

Two young settlers guard this illegal outpost. Construction hasn't even begun, but we are not welcome.

WARD: So, they are asking us to leave. They don't want to talk to us. They said they've been here for about nine months.

WARD (voice-over): Dotted across the landscape, more signs of the fight to assert Israeli control over Palestinian land. The Arabic names on signposts

crudely erased.

Under international law, the Beit Hogla settlement is illegal, but last February, the Israeli government officially recognized it along with eight

others, a move the U.S. strongly opposed.

We're here because God promised us this land, Azriel Picard (ph) tells us.

Now, these settlers have set their sights on a new prize, one that seemed utterly impossible before October 7th.


Returning to Gaza, they cheer. That is the goal of Zionist settler organization Nachala, one of more than a dozen groups now advocating for

the re-establishment of Israeli settlements in Gaza. A recent promotional video even boasts that Gaza will become the next Riviera.

Daniella Weiss is the godmother of the movement. She's already started recruiting from the 700,000 strong settler community of Israel.

WARD: We're just arriving now at a settlement in the occupied West Bank, and we're heading to a talk that Daniella Weiss is giving to people who are

potentially interested in resettling Gaza.

We are for the land of Israel and Ben-Gvir, she says.

About 20 people gather in a living room of a family home. Weiss knows that for many in this community there is deep nostalgia for Gush Katif, a block

of 21 Israeli settlements that were forcibly evacuated by the IDF in 2005 when Israel left the Gaza Strip.

This is the vision of Gaza, she says. You see all the nucleus groups.

A map has already been drawn up, with six groups laying claim to different parts of the enclave.

WARD: So, they've just been handing out these little booklets that say people of Israel return home, and then underneath a call to return to the

settlements of Gaza.

WARD (voice-over): One of the organizers tells the group they have a representative flying to Florida to raise money. Nachala gets support from

a number of groups in the U.S., including AFSI, Americans for a Safe Israel, which co-sponsored a recent webinar on the return of Gush Katif,

even as the Biden administration has cracked down on settlements in the West Bank.

DANIELLA WEISS, DIRECTOR, NACHALA: There is a very strong support from very prominent, from very, I would say, wealthy people, wealthy Jews and


WARD: In the U.S.?

WEISS: In the U.S.

WARD: Can you name any names?

WEISS: No, I cannot. No.

WARD (voice-over): Back at her home in Kdumim settlement, Weiss tells us she's already enrolled 500 families.

WEISS: I even have on my cell phone names of people who say, enlist me, enroll me. I want to join. I want to join the groups that are going to

settle Gaza.

WARD: I have to ask you though, because we're sitting here talking and we are listening to the calls of prayer.

WEISS: Yes, I'm listening. I hope you are listening to it.

WARD: Which is a reminder, I think, of the people who live here, but also the people that live in Gaza. What happens to them in this vision of this

new settlement with Jewish settlers even in Gaza City?

WEISS: What I think about Gaza, the Arabs of Gaza lost the right to be in Gaza on the 7th of October. Yes, I do hear the mosque, I do hear that the

prayer, things were different until the 7th of October.

No Arab-- I'm speaking about more than 2 million Arabs, they will not stay there. We, Jews, will be in Gaza.

WARD: That sounds like ethnic cleansing.

WEISS: OK. The Arabs want to annihilate the State of Israel. So, you can call them monsters. You can call them cleansing of Jews. We are not doing

to them. They are doing to us. I couldn't make it clearer when I said to myself, as a person, who is preoccupied with settling the land, until the

7th of October I didn't have plans of returning to Gaza. It's clear, I'm not interested in cleansing.

WARD (voice-over): What is clear is that Weiss' views, traditionally seen as extreme in Israel, have become more popular since October 7th.

In late January, Jubilant crowds packed an auditorium in Jerusalem for the Victory of Israel conference calling for the resettlement of Gaza.

A poll that month from the Jewish People Policy Institute found that 26 percent of Israelis advocate the reconstruction of the Gush Katif

settlements after the war is over. Among supporters of Prime Minister Benjamin Netanyahu's right-wing coalition government, that number jumps to

51 percent.

Several ministers were present at the conference, including far-right heritage minister, Amihai Eliyahu.

In a rare interview with western media, he tells us his political decisions are guided by the Torah.

WARD: Is there anything about Gush Katif in here?


WARD (voice-over): And that settlements in Gaza are needed to prevent another October 7th.

ELIYAHU (through translator): The language of the land says that wherever there is a Jewish settlement, there will be more security. It doesn't mean

there will be absolute security, but there will be more security.


WARD: Why would you advocate for something that many would say is illegal, is immoral, is not supported by the majority of Israelis, and is also very

harmful to Israel in terms of its international standing?

ELIYAHU (through translator): Why do you think it's immoral to take the land from someone who wants to kill me? Why is it immoral to take my land,

which my ancestors live there, which I've even given up to someone who slaughters, rapes, and murders me? What is more immoral than that?

WARD (voice-over): Netanyahu has called resettling Gaza "an unrealistic goal." And most Israelis agree. But that hasn't stopped scores of IDF

soldiers fighting there from posting videos, calling for a return to Gush Katif.

For many supporters of the settler movement what was once a distant fantasy is now a fervent dream.

Clarissa Ward, CNN, The Occupied West Bank.


CHATTERLEY: OK. Coming up here on "First Move," no dips in the U.S.'s commitment to chips. The U.S. announcing billions in new grants and loans

to chip giant Intel on Wednesday. The ultimate goal, to make far more chips stateside after losing out for decades to manufacturers in Asia. Our

interview with CEO Pat Gelsinger, next.


CHATTERLEY: U.S. President Joe Biden announced on Wednesday his administration's latest effort to bring cutting-edge tech manufacturing

back to the United States.

The U.S. awarding chipmaker Intel $8.5 billion in grants and up to $11 billion worth of loans to help expand its U.S. production. It's the largest

chunk of money handed out so far from the so-called Chips and Science Act passed by Congress two years ago.

The aim of the Chips Act is to make the U.S. less reliant on overseas technologies and manufacturers and help spur new U.S.-made innovation and

production. President Biden, who traveled to the U.S. State of Arizona for the announcement, calls the grants an investment in America's manufacturing

future that will create tens of thousands of jobs.



JOE BIDEN, U.S. PRESIDENT: We will enable advanced semiconductor manufacturing to make a comeback here in America after 40 years. It's going

to transform the semiconductor industry and create entirely new ecosystems, entirely new research and design.


CHATTERLEY: Intel will use the money to build or expand plants in Arizona and three other U.S. states. All this as the firm gears up to take on stock

market phenomenon Nvidia and brand-new -- with brand-new A.I. products.

I spoke earlier with Intel CEO Pat Gelsinger about his company's expansion plans, the significance of this announcement, and plenty more. Listen in.


PAT GELSINGER, CEO, INTEL: It really has been a great day and we've been working on the Chips Act now for a couple of years. And obviously, since we

got it across the line in the '22 of August when we signed it on the White House lawn. And since then, the chip program office getting set up, you

know, lots of things going on. Working with them.

And today's grants, $8.5 billion of capital grants, $11 billion of loan guarantees, the 25 percent of our tax benefits, all of that coming together

because the United States is saying, hey, we're going to build and manufacture in the U.S.

CHATTERLEY: How much of that are you going to be actually able to utilize? And I guess the crucial question is how quickly, because it's been a

process of two years now trying to get to this point? How quickly can you start utilizing this money? Because I know you have big ambitions.

GELSINGER: Yes, and we're underway. Many of these manufacturing projects are already well underway. So, we're putting our capital to work. And as I,

you know, negotiated and got this across the line. So it was, I've already put my chips on the table. And for that, you know, quip (ph) aside, you

know, we've been believing that this is going to come together. And a super proud moment to have the Secretary Raimondo here and President Biden. So,

we're already putting this to work.

We've already started to realize some of the tax benefits have already started to materialize for us in our financials, but a lot of this is '24,

'25, and '26, you know, when the major amounts of the grants and other items start coming together for us as we're making these huge capital

commitments. It's over five years, 100 plus billion that we're putting, and it's across four projects.

You know, we have our major Oregon research site, the Silicon Forest as I call it, you know, the major new manufacturing site in Ohio, the Silicon

Heartland, in New Mexico, what we call the Silicon Mesa for the most advanced packaging, and right here in Arizona where we had today's

announcement, the Silicon Desert, all of these underway as we rebuild manufacturing in the U.S.

CHATTERLEY: Yes, work well on the way, as you've said. I mean, Joe Biden, the president, was touting the jobs to be created in this process as well,

10,000 company jobs, 20,000 construction almost jobs, and then the indirect support of 50,000 jobs. Is hiring the engineers and the advanced trade is

going to be your biggest limitation, do you think, or is it going to be the construction workers that you're going to require to help you do this?

GELSINGER: Well, right now, our biggest challenge is, in fact, the construction workers, you know, the skilled trades workers, electricians

and plumbers and welders and so on. And given a bit of the manufacturing build out boom and some of the construction boom in the U.S., you know,

this is the tightest skill.

Also, some of the other things, hiring the technicians, the engineers, we have more time to develop those skills. And part of this as well was a $50

million commitment by the CHIP's office, you know, the National Science Foundation and Intel to help build those new jobs programs at both the

community college level as well as at the university level.

And in each one of those four locations, the responses that we've gotten from the local universities and colleges has been nothing short of

spectacular to build the workforce that we need.

CHATTERLEY: And I know, as you said, you're in Arizona, and I don't want to take the spotlight off them. But Ohio -- excuse me, Ohio does get me very

excited because that's where you plan to manufacture the A.I. chips and hopefully in the future, manufacture them for other big players as well.

I know you've already got Microsoft on board as a partner. So, this is fantastic, or as a client. Now, at the present day, Nvidia and likes of AMD

send their manufacturing orders abroad in order to do that. What's your message to Jensen over at Nvidia or some of these other big players to say,

hey, you should be building on Intel?

GELSINGER: Well, we certainly are committing the Intel product line to use these factories that we're building. Obviously, like you said, Microsoft

and previously, we have three other, you know, customers that haven't been named, but we've also been committed to these manufacturing capabilities.

But our message to the others in the U.S. fabless community is we are open for business. And we had an event a couple of weeks ago, what we called our

Foundry Direct Connect, where it was the ecosystem, the key EDA providers like Synopsys, Cadence, and Siemens, and, you know, the others that are

facilitating and helping that ecosystem, a hugely positive event. And we've seen since then a surge of activities for the Intel Foundry, many test



But one of the things that has been a pleasant surprise is those pieces of silicon go into advanced packages. And Intel is the unquestioned leader in

that area, and we have, you know, supply and capacity in those areas. So, this has been sort of like the faster on-ramp to our foundry business, and

we're now seeing a lot of activity with many of those companies.

So, simple messages, we're open for business. And we had Secretary Raimondo here. And now, that this investment commitment is underway, we sort of joke

that she becomes my best salesperson. You know, she's encouraging this rebuilding of supply. And, you know, the secretary, she has quoted and

commissioned from me now, you know, but we have a huge partnership as she's encouraging these most advanced A.I. chips to be right here in America, be

built in the sites like Ohio, and I really think that becomes the A.I. systems factory of the future right there in Ohio.

CHATTERLEY: Yes, and it's about balancing that relationship between and competitive, because I know that's where you're headed and where your

ambitions are, and also being a partner with these guys too, but that's the industry.

I read late last year that Sam Altman of OpenAI said he wanted to raise $7 trillion to develop and manufacture chips in order to guarantee A.I.

progress, and I think my mind blew. I'm assuming he was including the power costs in there and the data required to do it. But how big is the total

addressable market that we're talking about, simply for these A.I. chips that we're talking about now in your mind? Like, how big is the


GELSINGER: Well, most estimates for the semiconductor industry, today it's about $600 billion, and the estimates are by 2030, it's a trillion dollar

plus industry. Now, a lot of those estimates don't assume a lot of acceleration for the A.I. chips.

So, part of Sam's thesis is, hey, I need to build bigger machines to train an inference to accomplish AGI, you know, this artificial general

intelligence objective. And maybe the computing requirements for that, you know, aren't 10 or 100 times bigger, but maybe 10,000 times bigger than


So, with that, we need bigger data centers, more power for those data centers, but we need a whole lot more chips. So, I think the estimates are

that, hey, this is probably going to go faster, and that's why, you know, today's announcement is so critical as we're building the capacity for

these A.I. surge requirements for the semiconductor industry, and we want to be a supplier to all of Sam's software, to Microsoft, as we've already

announced, and everybody else, in addition to the Intel product line.

This is super important for the future of our industry, for Intel and rebuilding western manufacturing at scale.

CHATTERLEY: Yes, you're pitching again. You'll have to put in a call to Gina and get her to make that introduction again for you. I was going to

say, though, I compare those kind of numbers that you're talking about to the -- as important as it is, the numbers that we're talking about today,

and it's not enough, even with the private sector's ability to leverage. More money is required on top of everything else, surely.

We're not done yet, and nor is the government, whoever the government is that's making this decision in the future.

GELSINGER: Yes, and I firmly believe that, and, you know, I've touched on that I think there's going to be CHIPS too. And it took us over three

decades to have this industry migrate to Asia. You know, A three- or four- year CHIPS Program doesn't correct for over three decades of this industry migrating away.

And as I said, by a moonshot, it would be at the end of the decade. Maybe we're getting back to 50/50 in U.S. and Europe for the most advanced

semiconductors. So, that's very aggressive build out from where we are today, but super important to the economic future as well as the national

security interests.

So, today, you know, a real marker on that journey. But we got a lot of work to do. It's going to take a lot more investment, and chips one is a

great starting point. And the best thing that we can do is make chips one successful. So, we've built the political will and investment capital for

chips two and the full sustainability of this ecosystem for the future.


CHATTERLEY: Intel's CEO Pat Gelsinger there.

All right. Coming up on "First Move." Shohei Showtime. How Ohtani L.A. Dodgers faired in the first game of the MLB Seoul series, next.



CHATTERLEY: Welcome back. A sparkling show for Shohei. Baseball superstar Shohei Ohtani had two hits in his debut for the L.A. Dodgers and his team

beat the San Diego Padres to open the Major League season in Seoul on Wednesday night. And take a look at this. Ohtani's new wife, Mamiko Tanaka.

Yes, you could see her there, and she was extremely happy.

Don Riddell joins me now. That gets the most important part of this conversation out of the way, for using your new wife. Talk to us about the


DON RIDDELL, CNN WORLD SPORT: Yes. I mean, great occasion, great excitement. The hype was off the charts ahead of this one. Of course, we

all know about Shohei Ohtani, the 700-million-dollar man. The Dodgers going into this new season as the favorites to win the World Series.

This was the first time that we had a real Major League Baseball game being played in South Korea, which is a baseball mad country anyway. So, so much

interest and excitement. The fans were queuing in -- queuing up hours and hours before this game to get in. And when it finally did get in, the man

of the moment delivered.

Ohtani, as you say, with a couple of hits and he didn't take long either. His second at-bat was when he scored his first hit. He drove in his first

run in the eighth inning, which was a big inning for the Dodgers. They had to come from behind to win this one by five runs to two. And everybody just

loved it.

We had a crew in Seoul and they caught up with some of the fans after the game, some of whom, by the looks of it, had traveled from Japan to see

their man.

UNIDENTIFIED MALE t (through translator): I was in Sapporo as an exchange student, and that was during Ohtani's last season before going to the MLB.

So, being able to watch Ohtani then and now in Seoul is so meaningful for me.

UNIDENTIFIED MALE t (through translator): Ohtani is an Asian player who is making amazing achievements in the U.S. and is like the best player you'd

see in a hundred years. And the fact that such a player is in South Korea as a Dodgers player to play in the opening game is so meaningful for me.

DAVE ROBERTS, LOS ANGELES DODGERS MANAGER: It's fantastic. I think the energy, the enthusiasm from the Korean fans is great, certainly different

from the States. But, yes, I think that we brought our walk-up songs and our kind of in-house music. The Padres brought theirs. So, it was a nice

collection, combined effort from, you know, the Korean fans and our own home cooking. But it's been a great experience.


RIDDELL: Julia, if you like that, there are 161 more regular season games where that came from. And the next one is a repeat of these two teams

playing in Seoul coming up on Thursday in just a few hours' time.

CHATTERLEY: Is that all?

RIDDELL: And then, it's the postseason. But yes. They play a lot of games in baseball.

CHATTERLEY: Yes, I love it. Great. Bring on the wives. Don Riddell, thank you so much for that.

OK. And it's a funny and finally on "First Move" today, it seems Finland is having the best time on International World Happiness Day for the seventh

straight year. With its northern lights, long summer days and very brave, that's one word for its swimmers. Finland takes the top spot as the

happiest nation in the world.


Now, the rankings are based on factors such as economic growth, life expectancy, and perceptions of corruption. There's also honesty, freedom,

and a good education.

Denmark, Iceland, Sweden, and Israel round out the top five. The U.S. needs a bit of a pick-me-up. It's slipped now to number 23 on the list.

Just if anyone's asking, champagne and pearls is what makes me happy. Can I add diamonds, dogs, and general happiness too?

And that's about wrapping up the show. Thank you for joining us. I'll see you tomorrow.