Intel CEO says semiconductor shortage could last years

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Nov 10, 2017
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Intel’s new CEO Pat Gelsinger has said that there could be a global shortage of semiconductors for several years, according to a Reuters report. This will affect consumer electronics such as computers, smartphones, and tablets to the point where consumers could see prices increase despite people having less money due to the coronavirus.

Speaking at a virtual event at the Computex trade show today, the shift to working and studying from home due to the virus has put a lot of pressure on supply chains that can’t keep up with demand. Giving a prognosis of the situation, Gelsinger said:
“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 terms of the short term measures that are being taken by Intel, the firm came up with a $20 billion plan a few months ago to expand its advanced chip manufacturing. The plan will see Intel build two new factories in Arizona and open up its plants to customers. In the future, Gelsinger envisions expanding production to more locations in the United States and Europe to create a “sustainable and secure semiconductor supply chain for the world.”
 

CyberTech

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Nov 10, 2017
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The global chip shortage will continue to worsen for the time being, according to Intel CEO Pat Gelsinger, with the industry forecast to endure a worsening situation throughout the second half of 2021, before there's any real hope of recovery.

The shortage in semiconductor production affecting the supply of chips for electronic devices is thought to not quite reach its worst stage yet, the chief of Intel believes. Speaking in an interview, Gelsinger proposes the shoratage could reach that point before the end of 2021.

A lack of supply of semiconductors will reach its lowest point in the second half of the year before starting its road to recovery, said Gelsinger, according to Bloomberg. However, even that may not be enough for some chip production clients.

"I don't expect the chip industry is back to a healthy supply-demand situation until 2023," the Intel CEO said. "For a variety of industries, I think it's still getting worse before it gets better."

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