Experts and tech industry veterans have long expected the global semiconductor shortage to last for years, but Intel chief Pat Gelsinger now says it could continue for much longer. previously expected. CEO told CNBC’s TechCheck that he expects the problem to last until 2024, as shortages have already affected the equipment manufacturing industry. That can make it harder for companies to acquire critical production tools and hit production targets that may be larger than before due to growing demand.
Gelsinger told the publication:
“That’s part of the reason we believe the overall semiconductor shortage will now move into 2024, compared to our previous estimate for 2023, just because the shortage has now affected the equipment and some factory ramps will be more of a challenge.”
Lockdowns related to the COVID-19 pandemic have severely impacted the chip industry at a time when demand is surging. It forces not only tech companies, but also automakers like GM and Ford, to limit and even suspend production. Apple’s MacBook and iPad Shipments face delay due to component shortages and overall smartphone shipments fall at the end of 2021. This negative impact on the tech and auto industries leads to devastating economic consequences – according to CBS NewsThe global chip shortage costs the US $240 billion in 2021 based on experts’ estimates.
Gelsinger had previously said that he believes the situation will last until 2023, in line with the expectations of analysts and other industry executives. After Gelsinger became Intel’s CEO, the company announced several major investments aimed at expanding chip production outside of Asia. (It should be noted, one Bloomberg reports from late 2021 claim that the White House “very frustrated“Intel from ramping up chip production in China.) Intel says it’s spending $20 billion to build two chip factories in Arizonaand at least another $20 billion to build “the largest silicon production site on the planet” in Ohio.
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