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Intel reminds that the shortage of global chips can last for several years

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Intel’s chief executive said Monday that it could take several years to address the global shortage of semiconductors, a problem that has closed some car production lines and is being felt in other areas, including consumer electronics.

Pat Gelsinger said at a virtual session of Computex in Taipei that the trend of working and learning from home in COVID-19 the pandemic has led to a “cycle of explosive growth in semiconductors” that has strained global supply chains.

“But while the industry has taken steps to overcome short-term constraints, it may still take several years for the ecosystem to cope with the shortage of foundry capacity, substrates and components.”

Gelsinger had told The Washington Post in an interview in mid-April, the shortage will take “several years” to reduce, and that plans to begin producing chips within six to nine months to address the shortage in U.S. car plants.

Intel announced a $ 20 billion (approximately 1.44,720 crore) plan in March to expand its advanced chip production capacity, build two factories in Arizona and open factories to external customers.

“We plan to expand elsewhere in the United States and Europe by providing a sustainable and secure semiconductor supply chain to the world,” Gelsinger said without explanation.

Intel’s plans could directly challenge the other two companies in the world that can produce the most advanced chips – Taiwan Semiconductor Manufacturing Co (TSMC) and South Korea Samsung.

The two dominate semiconductor manufacturing, shifting the center of gravity from the United States, where much of the technology was once invented, to Asia, where more than two-thirds of advanced chips are now produced.

© Thomson Reuters 2021

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