Intel chief expects chip shortage to worsen

Intel chief expects chip shortage to worsen

San Francisco, 7/23/2021

Because semiconductors are in short supply in every sector, massive production shortfalls are occurring more and more frequently worldwide. In addition, it is becoming apparent that the optimists have overestimated their forecast that the chip market would calm down again by next year at the latest.

Intel boss Pat Gelsinger no longer believes in a quick end to the semiconductor crisis. On the contrary, he expects the shortage to worsen in the coming months and continue into 2023. „While I expect bottlenecks to bottom out in the second half of the year, it will take another year or two for the industry to fully meet demand,“ the Intel chief said.

Meanwhile, his company is in the process of building new production capacity. Gelsinger’s plan amounts to becoming a contract manufacturer for other chip developers. He has already held talks with about 100 customers, the CEO said. Recently, numerous media outlets reported Intel would acquire contract manufacturer Globalfoundries for $30 billion. However, Thomas Caulfield, CEO of the takeover candidate, made it clear in a statement that there would be no sale.