Chip supply shortage likely to last several years: Intel

On Monday, in a statement Intel Corp said, it could take several years before the global chip shortage is resolved. The issue has resulted in the closure of some auto production lines and is felt in other industries as well, including consumer electronics.

During a virtual session at the the Computex trade show in Taipei, Pat Gelsinger said, “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”.

He went on to add, “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.”

In an interview to The Washington Post Intel said the chip shortage is likely to take “a couple of years” to abate; and that it plans on commencing chip production within six to nine months to address shortages at U.S. car plants.

Earlier this year in March, Intel had announced a $20 billion plan to expand its advanced chip manufacturing capacity, by building two factories in Arizona.

“We plan to expand to other locations in the U.S. and Europe, ensuring a sustainable and secure semiconductor supply chain for the world,” said Gelsinger, without elaborating. The move marks a direct challenge the other chip companies including Taiwan Semiconductor Manufacturing Co Ltd (TSMC) and Samsung Electronics Co Ltd. These two companies dominate the chip production business, and have moved their production facilities away from the United States to Asia, where more than two-thirds of advanced chips are now produced.

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