Intel CEO Confirms The Chip Shortage Would Take Several Years To Fix

According to reports, Intel CEO Pat Gelsinger said that the global chip shortage problem may take years to resolve. At present, the problem has led to the closure of some automobile production lines, and other areas including consumer electronics have also been affected.

Gilsinger said at a virtual conference at the Computex in Taipei that the trend of people working and studying from home during the COVID-19 pandemic has led to an “explosive growth cycle in the semiconductor industry”, which has put tremendous pressure on the global supply chain.

“However, although the industry has already taken measures to address recent constraints, it may take several years for the ecosystem to resolve the shortage of foundry capacity, substrates, and components.”

Gilsinger said in an interview with the media in mid-April that the industry will take “a few years” to alleviate the shortage of chips, and plans to start producing chips within 6-9 months to solve the shortage of American auto factories.

Intel announced a $20 billion plan in March this year to expand its advanced chip manufacturing capabilities. In addition, the company has established two factories in Arizona, which are open to external customers.

Read This: Intel Loses $2.18 Billion To Patent Troll

Gilsinger said: “We plan to expand to other regions in the United States and Europe to ensure the sustainability and safety of the global semiconductor supply chain.” However, he did not elaborate on the specific details.

Intel’s plan could declare war directly on the world’s two other to produce the most advanced chip companies, namely Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics (Samsung Electronics Co.).

At present, the above two companies have begun to dominate the semiconductor manufacturing business and shift their focus from the United States, where a large number of semiconductor technologies have been invented, to Asia, where more than two-thirds of advanced chips are now manufactured.