Intel’s CEO says the crunch chip will last until 2024

Pat Gelsinger, CEO of Intel Corporation, holds a semiconductor chip during testing during the Senate hearing on Commerce, Science and Transportation titled Developing Next Generation Technology for Innovation, at the Russell Senate Office Building on Wednesday, March 23, 2022.

Tom Williams | CQ Roll Call, Inc. | Getty Images

intel CEO Pat Gelsinger told CNBC on Friday that he now expects the semiconductor industry to experience supply shortages until 2024.

In an interview on “Technical check“Gelsinger said the global chip crisis could drag on due to the limited availability of key manufacturing tools, which act as an obstacle to expanding the levels of capacity needed to meet high demand.

“This is part of why we believe the overall semiconductor shortage will now drift into 2024, from our previous estimates in 2023, just because shortages have now hit equipment and some of those factory ramps will be more tested. “said Gelsinger.

The CEO’s comments come a day after the Californian chipmaker offered a forecast for the second quarter which was lighter than Wall Street expected. However, first quarter earnings and revenue exceeded analysts’ expectations. Intel shares fell more than 6% on Friday.

The need for more semiconductors has been growing for years as the world becomes more digital and processing chips go into everything from smartphones to cars to washing machines.

The Covid pandemic caused a severe shortage, although demand for consumer electronics took off at the same time as the factories were shut down. significant economic consequences Other contributed to the US economy which has been experiencing its highest inflation since the early 1980s.

Since Gelsinger took over as CEO in February 2021, Intel has announced a series of major investments to geographically diversify chip manufacturing. The company is spending heavily to build semiconductor factories, known as manufacturing plants, in USA and Europe. Most of the world’s manufacturing capacity is now concentrated in Asia.

“We’ve really invested in those equipment relationships, but that will strengthen the ability to build for us and everyone else, but we believe we are better positioned than the rest of the industry,” said Gelsinger.

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