Chip Shortage Will Continue In 2023, Says Intel CEO

TECH NEWS – Intel CEO Pat Gelsinger is not optimistic about the end of the chip shortage, and there could still be a lack of products because of it.


CNBC spoke to Gelsinger, who is not alone in his predictions of a shortage of semiconductors and chips, as Dr Lisa Su and Jensen Huang, the heads of AMD and Nvidia, have also spoken about when they think the drought, which has been affecting us pretty seriously for more than two years, will improve. In short, all optimism has been dashed.

Unlike before, there is now a different reason behind the chip shortage. “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 the equipment, and some of those factory ramps will be more challenged,” Gelsinger said. So the parts shortage will be with us for longer, but at least Gelsinger’s leadership has been helpful to Intel so far. For example, they will be bolstered by European manufacturing, but Malaysia and the US will also see the results of the company’s investment.

And Gelsinger told Bloomberg, “We feel like we’re better positioned than most. The combination of our internal capacity and our leverage of foundries — we’re just better positioned, and that’s part of the structural advantage that Intel has.” It might still be an interesting situation for Intel because they have started to produce video cards in addition to processors so that a third manufacturer could enter the market alongside the two that have been there so far. It could transform the market (and create more competition between them, with positive effects for consumers).

We are curious to see when chip production will return to what we might call ‘business as usual’ and to hear whether AMD and Nvidia have also pushed back the date for the end of the shortages. However, it is worth noting that the situation is volatile: sometimes we hear more positive statements from the Gelsinger, Su, Huang trio, sometimes more pessimistic… there is a good chance that they will also say 2024.

Source: WCCFTech

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