The global chip shortage is expected to remain an issue until 2024, according to Intel CEO Pat Gelsinger.
The global semiconductor shortage is continuing to squeeze the electronics industry by limiting the manufacture of chips. While efforts are being made to try and improve the situation, Intel’s CEO doesn’t think supplies will ease anytime soon.
In an interview with CNBC, Gelsinger stated that he believes shortages will remain until 2024, with limited availability of manufacturing tools impacting the ability to expand production and meet demand.
“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,” the CEO said.
Gelsinger’s comments followed Intel’s quarterly report, in which the company took in $18.35 billion in revenues. Unfortunately, shares declined in trading due to a lower-than-expected fore care.
Intel has stated that it is currently investing in U.S. and Europe-based chip production facilities to help address the problem.
“We’ve really invested in those equipment relationships, but that will be tempering the build-out capacity for us and everybody else, but we believe we’re positioned better than the rest of the industry,” Gelsinger insisted.
Gelsinger’s 2024 prediction is pessimistic, but other companies have also offered observations that the shortages will last for quite a while.
As of November, Apple assembly partner Foxconn warned that chip shortages could last until the second half of 2022. In January, the White House concluded that the shortages could last until at least the latter half of 2022, with the supply chain deemed “fragile” at the time.
Stay tuned for additional details as they become available.
Via AppleInsider and CNBC