Intel CEO Says Global Chip Shortage Could Take Years to Resolve
Chip supply shortages could last several years, Intel’s new CEO has warned.
The global chip shortage may not end in 2022 and could take years to fully resolve, according to Intel’s new CEO, and that’s because of a huge strain on global supply
Intel CEO Says Global Chip Shortage Could Take Years to Resolve
Chip supply shortages could last several years, Intel’s new CEO has warned.
The global chip shortage may not end in 2022 and could take years to fully resolve, according to Intel’s new CEO, and that’s because of a huge strain on global supply chains.
Intel Warns About Prolonged Chip Shortages Pat Gelsinger, Intel’s new CEO, was speaking at a virtual session of the Computex trade show in Taipei when he briefly addressed the subject of the global chip shortage that has affected many sectors of technology, ranging from electric cars to computers, smartphones, and tablets to gaming consoles, graphics cards, and beyond.
Reuters has the quote:
But while the industry has taken steps to address near term constraints it could still take a couple of years for the ecosystem to address shortages of foundry capacity, substrates, and components.
In other words, expect shortages of chips to extend beyond 2022.
Why Is There a Shortage of Chips? The silicon crunch is the result of the perfect storm of the following factors:
COVID pandemic: People are upgrading their work-from-home setups. Lockdowns: We bought new gadgets to entertain ourselves during lockdowns. Production issues: Chip plants shattered temporarily due to health protocols. Combined, these factors have resulted in an unprecedented global demand for semiconductors that couldn’t be fulfilled in due time no matter how you look at it.
The Intel CEO himself acknowledges as much, saying he believes that this “cycle of explosive growth in [the demand for] semiconductors” has placed an unbearable strain on global supply chains for semiconductors.
A Crisis in the Chip-Making Industry Making the matter worse, chipmakers can’t just throw money at the problem to make it go away—it takes billions of dollars and 18-24 months to build a sophisticated semiconductor plant from scratch, up to the point when it’s capable of churning out chips in volume.
Intel on its part is investing $20 billion in two brand new factories in Arizona and an expansion of its current chip manufacturing capacity. Additionally, Intel will be opening its plants to outside customers, something it’s never done before.
Moreover, the troubled chipmaker is planning to expand to other locations in the US and Europe. The move should ensure “a sustainable and secure semiconductor supply chain for the world,” Gelsinger said recently without elaborating further.
Electronics makers Samsung, Sony, and Xbox have said the global chip shortage will last at least throughout 2022, highlighting the global nature of the issue.
Graphics cards are now pricier than before. Certain Macs and iPads are in low supply. Nintendo’s Switch sales are affected. And good luck purchasing a PlayStation 5 in 2021!
Rival Taiwan Semiconductor Manufacturing Company (TSMC), in the meantime, has set aside $100 billion to boost its production capacity. To give you a better idea of the vast scope of the problem, TSMC was running at full capacity in 2020—and this is the world’s biggest semiconductor foundry we’re talking about.
chains.
Reuters has the quote:
But while the industry has taken steps to address near term constraints it could still take a couple of years for the ecosystem to address shortages of foundry capacity, substrates, and components.
In other words, expect shortages of chips to extend beyond 2022.
Why Is There a Shortage of Chips? The silicon crunch is the result of the perfect storm of the following factors:
COVID pandemic: People are upgrading their work-from-home setups. Lockdowns: We bought new gadgets to entertain ourselves during lockdowns. Production issues: Chip plants shattered temporarily due to health protocols. Combined, these factors have resulted in an unprecedented global demand for semiconductors that couldn’t be fulfilled in due time no matter how you look at it.
The Intel CEO himself acknowledges as much, saying he believes that this “cycle of explosive growth in [the demand for] semiconductors” has placed an unbearable strain on global supply chains for semiconductors.
A Crisis in the Chip-Making Industry Making the matter worse, chipmakers can’t just throw money at the problem to make it go away—it takes billions of dollars and 18-24 months to build a sophisticated semiconductor plant from scratch, up to the point when it’s capable of churning out chips in volume.
Intel on its part is investing $20 billion in two brand new factories in Arizona and an expansion of its current chip manufacturing capacity. Additionally, Intel will be opening its plants to outside customers, something it’s never done before.
Moreover, the troubled chipmaker is planning to expand to other locations in the US and Europe. The move should ensure “a sustainable and secure semiconductor supply chain for the world,” Gelsinger said recently without elaborating further.
Electronics makers Samsung, Sony, and Xbox have said the global chip shortage will last at least throughout 2022, highlighting the global nature of the issue.
Graphics cards are now pricier than before. Certain Macs and iPads are in low supply. Nintendo’s Switch sales are affected. And good luck purchasing a PlayStation 5 in 2021!
Rival Taiwan Semiconductor Manufacturing Company (TSMC), in the meantime, has set aside $100 billion to boost its production capacity. To give you a better idea of the vast scope of the problem, TSMC was running at full capacity in 2020—and this is the world’s biggest semiconductor foundry we’re talking about.