Barely six months have passed since Intel CEO Pat Gelsinger predicted that the chip shortage would last until 2023. Now, it seems things have changed for the worse. And it is that, according to the businessman, the crisis would last at least until the distant 2024. This was confirmed on Friday during statements to CNBC.
In addition, due to the lack of manufacturing tools, the industry is facing a new obstacle, and that is the inability to expand the necessary capacity to meet the high market demand.
We believe that the overall semiconductor shortage will shift to 2024, compared to our previous estimates of 2023, simply because the shortage has now reached production equipment and some of these factory facilities will be more affected.
Pat Gelsinger, CEO of Intel
Having semiconductors is a need that has been growing year after year. Every time the world becomes more and more digitized, supplying the necessary tools for the production of these devices it’s gotten pretty complicated. However, never before has there been a crisis like the current one.
Intel doesn’t want you to worry about shortages
Although the news shared by Gelsinger sounds discouraging, it is not the end of the technological world. In fact, that there is a shortage of chips does not mean that everyone will be affected. Some industries will be more impacted than others. In fact, according to what the manager said, Intel is quite stable in this regard.
Pat Gelsinger had some comments about it during a call with investors. “For the first time in years, Intel factories and our supply of substrates are close to meeting the demand of our customers“said the CEO.
That yes, the products that are not being produced in existing lines they will be the most affected due to scarcity, says the CEO.
“We expect the industry to continue to struggle until at least 2024 in areas such as foundry capacity and the availability of tools like IDM.”
Pat Gelsinger
Until now, the devices that have been most affected by the low availability of components have been video game consoles, GPUs and CPUs. However, it seems that little by little the market has managed to stabilize a bit.
This does not mean that the shortage is disappearing, just that it has moved to other sectors of the industry. Gelsinger comments that the production of network technologies has been hit hardand it’s one of the main reasons computer shipments have been severely curbed in recent years.
Intel expects to maintain its elevated position for years to come. On the other hand, they have invested heavily in partners who provide equipment; and although they will probably not be without problems, “we believe we are better positioned than the rest of the industry,” said Gelsinger.