Intel CEO says chip shortage could persist for a couple years
- Intel CEO Pat Gelsinger said during Taipei’s Computex trade show that the global semiconductor shortage could take years to resolve
- Intel is investing US$20 billion in expanding advanced chip manufacturing in the US and opening its foundries to outside customers
Pat Gelsinger told a virtual session of the Computex trade show in Taipei that the work-and-study-from-home trend during the Covid-19 pandemic had led to a “cycle of explosive growth in semiconductors” that has placed huge strain on global supply chains.
“But while the industry has taken steps to address near term constraints, it could still take a couple of years for the ecosystem to address shortages of foundry capacity, substrates and components.”
Gelsinger had told The Washington Post in an interview in mid-April the shortage was going to take “a couple of years” to abate, and that it planned to start producing chips within six to nine months to address shortages at US car plants.
Intel announced a US$20 billion plan in March to expand its advanced chip manufacturing capacity, building two factories in Arizona and opening its plants to outside customers.
“We plan to expand to other locations in the US and Europe, ensuring a sustainable and secure semiconductor supply chain for the world,” Gelsinger said, without elaborating.