Intel CEO: Chip Shortage Might Drag Into 2024
In a recent interview, Intel CEO Pat Gelsinger stated that he expects the semiconductor industry might suffer supply shortages until 2024 as the shortage has now hit equipment manufacturing.
Despite GPU stock finally normalizing and prices becoming lower, the global chip shortage anyway may last longer than we expected. That's according to Intel CEO Pat Gelsinger who, in a recent interview with CNBC, shared that he expects the semiconductor shortage might go on into 2024.
One of the reasons for that is the limited availability of key manufacturing tools. "That’s part of the reason that we believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged," Gelsinger explained.
Previously, Gelsinger predicted several times that the chip shortage could end by 2023. During Intel's Q2 earnings call in July 2021, he shared that he expects the chip shortage might continue into 2022, with supply issues dragging into 2023. He also mentioned that he didn't anticipate the semiconductor shortage to end until 2023 in October last year.
Meanwhile, the situation might not affect every kind of chip with some industries suffering from semiconductor shortages more than the others. It should be noted that Intel itself is currently in a pretty good state and are really close to meeting the demand for its own chips, according to the company's Q1 2022 earnings call.
In an interview with CNBC, Gelsinger also noted that Intel is investing heavily in building semiconductor factories. "We’ve really invested in those equipment relationships, but that will be tempering the build-out of capacity for us and everybody else, but we believe we’re positioned better than the rest of the industry," he said.
Since 2020, the chip shortage seems to be a relentless issue. Among the most notable examples are the sales of the next-gen gaming consoles like the PlayStation 5 and the Xbox Series X as well as new desktop GPUs from AMD and Nvidia. However, the supply for Xbox Series X consoles apparently has gotten better over the past few weeks as it's getting more regularly stocked at different retailers.
You can find CNBC's interview with Pat Gelsinger here. Also, don't forget to join our new Reddit page, our new Telegram channel, follow us on Instagram and Twitter, where we are sharing breakdowns, the latest news, awesome artworks, and more.
