Intel Says Chip Supply Shortages Could Last Several Years

Intel’s CEO said on Monday it could take several years for a global shortage of semiconductors to be resolved - a major problem that is influencing auto production lines and other areas, such as consumer electronics.

Pat Gelsinger said 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”, he commented.

Gelsinger also said that 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 $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 U.S. and Europe, ensuring a sustainable and secure semiconductor supply chain for the world”, he added.

It’s wise to note that Intel's plans directly challenge the two other companies in the world that can make the most advanced chips - Taiwan Semiconductor Manufacturing (TSMC) and South Korea's Samsung Electronics. The two have so far come to dominate the semiconductor manufacturing business, moving its centre of gravity from the US to Asia, where over two-thirds of advanced chips are now produced.

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