Intel CEO, Pat Gelsinger, says there is still little hope of solving the chip shortage problem in the short term, and this shortage may continue until 2024. In his interview with CNBC’s TechCheck, Gelsinger said that the shortage had hit equipment manufacturing, and this could extend the chip shortage period.
After the COVID-19 outbreak, the semiconductor segment and its related industries are suffering from chip shortages. There are many conflicting views on this issue. At first, it was thought that this problem could be solved in the short term. Initially, an analysis said the chip shortage could disappear soon.
Later, another source said the global chip shortage could last into 2022. However, the Intel CEO had a realistic vision from the beginning and said the problem could last for many years. Now, Pat Gelsinger says the problem is still with us until 2024.
“That’s part of the reason that we believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged.” Gelsinger noted.
Intel CEO says chip shortage won’t disappear anytime soon
According to Gelsinger, obtaining key manufacturing tools has become a challenge for companies, and they can’t meet the production goals. In the days when the need for chips in the world is increasing day by day, the closure of factories due to COVID-19 could be the worst possible news.
It’s not just technology industries that depend on chips. Car manufacturers are also having production problems because of chip shortages. Companies like GM, Ford, and Mercedes have limited the supply of cars to the market due to a lack of sufficient chips.
During this period, the supply of smartphones to the market was significantly reduced. Moreover, the release of the Google Pixel 6a may face a delay due to chip shortage.
Semiconductor companies have increased investment in new factories, and Chinese companies are somehow leading the way. Intel also recently announced plans to build a $19 billion factory in Germany. Manufacturers hope the new plants will be able to make up for the shortfall and return the market to normal.
Given the importance of the semiconductor industry, the White House has also stepped in to raise funds to support chipmakers in the country.