Global Chip Supply Shortages may Last Several Years: Pat Gelsinger
Intel's CEO, Pat Gelsinger, disclosed that a global shortage of semiconductors may take several years to be resolved. This problem has impeded some auto-production lines and the impact is also felt in other areas, including consumer electronics.
Gelsinger revealed via a virtual session at the complex trade show in Taipei that the widespread practice of working and studying from home during the covid-19 pandemic has resulted in a cycle of explosive growth in the semiconductors industry which has consequently placed a huge strain on global supply chains.
Pat went further to say that the semiconductor industry has taken certain steps to address the short-term complications. However, the ecosystem might require a couple of years to compensate for the shortages of substrates and components as well as foundry capacity.
In an interview in mid-April, the Intel CEO had told the Washington Post that the shortage would require a couple of years to abate and that entailed planning to commence the production of chips within six to nine months to compensate for the shortages at US car plants.
In March, Intel unveiled a 20 billion-dollar plan to expand its advanced chip manufacturing capacity, and build two factories in Arizona as well as opening its plans to outside customers.
Gelsinger stated that the Company plans to expand to other US locations and European locations to ensure a sustainable and secure semiconductor supply chain for the entire world. He however made no further comments on the matter. It however remains to be seen if Intel's plan will directly challenge the two other companies in the world that have dominated the manufacture of the most advanced chips: South Korea's Samsung and Taiwan semiconductor manufacturing Co (TSMC).
Both Samsung and TSMC have dominated the semiconductor manufacturing business, taking most of the business away from the United States which once was the home of the technology, and moving it to Asia which is now home to more than two-thirds of advanced chip manufacturers.Source