Intel reiterates global chip shortage could last several years

Taipei: The ongoing global chip shortage could take years to be resolved, Intel Corp.'s chief executive officer said, underscoring a problem that's afflicted automobiles to electronics amid the Covid-19 pandemic.

The work-and study-from-home trend during the Covid-19 pandemic had led to "cycle of explosive growth in semiconductors" that has placed huge strain on global supply chains", Pat Gelsinger told a virtual session of the Computex trade show in Taipei on Monday. "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 in mid-April, Gelsinger said the global chip shortage was going to take "a couple of years" to abate, and that Intel planned to start producing chips within 6-9 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," Gelsinger said, without elaborating.


Intel's plans could directly challenge the two other companies in the world that can make the most advanced chips—Taiwan Semiconductor Manufacturing Co Ltd (TSMC) and South Korea's Samsung Electronics Co. Ltd. They have come to dominate the semiconductor manufacturing business, moving its centre of gravity from the US, where much of the technology was once invented, to Asia, where more than two-thirds of advanced chips are now manufactured.