Intel CEO says chip shortage will persist for a ‘couple of years’
- Only 12 per cent of the world’s semiconductor manufacturing is done in the US today, down from 37 per cent a quarter of a century ago
- The global supply crunch has catapulted semiconductor firms into the limelight and to the top of political agendas
The global semiconductor shortage roiling a wide range of industries likely will not be resolved for a few more years, according to Intel’s new Chief Executive Officer Pat Gelsinger.
The company is reworking some of its factories to increase production and address the chip shortage in the auto industry, he said in an interview with CBS News, based on snippets from its 60 Minutes program that was aired Sunday. It may take at least several months for the strain on supply to even begin easing, he added.
“We have a couple of years until we catch up to this surging demand across every aspect of the business,” Gelsinger said.
Demand for semiconductors was boosted in 2020 as consumers scooped up home gadgets during the pandemic. But meeting that increase has been hard, thanks to shuttered plants, among other factors. Companies worldwide say they expect supply-chain constraints due to logistics backlogs and the chip shortage to continue for much of 2021.
The global crunch has catapulted semiconductor firms into the limelight and to the top of political agendas. The Biden administration last month told companies vying with each other for semiconductors that he has bipartisan support for government funding to address the shortages.
Gelsinger said US dominance in the industry had dwindled so much that only 12 per cent of the world’s semiconductor manufacturing is done in the country today, from 37 per cent a quarter of a century ago. Intel is the only manufacturer of high-end, cutting edge chips, he told CBS.