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The chip crisis will keep following until 2024: Intel CEO

Intel CEO Pat Gelsinger believes the global chip shortage will remain a global problem for the next two years. In an interview, he confirms that he does not expect the situation in the semiconductor industry to ease before 2024. The global shortage of semiconductors continues to put pressure on the electronics industry as it severely curtails chip production worldwide.

Intel has shown with the latest reports how this shows up in concrete terms in company numbers – while demand is still high in principle, business with CPUs for PCs and notebooks has fallen drastically. Turnover fell by 13 percent in the past financial year compared to the previous year.

Workaround in place

While efforts are underway to improve the situation, Intel’s CEO does not believe the supply situation will improve any time soon. in an Interview with CNBC Gelsinger elaborated on this. He expects the shortages to continue into 2024, with limited availability of manufacturing tools affecting the ability to expand production and meet demand, he said. “That’s one of the reasons we think the overall semiconductor shortage will extend from our previous estimates in 2023 to 2024, simply because the shortages are now trickling down to equipment and some of those factory disasters are becoming more challenging,” the Intel underlines. DIRECTOR. Gelsinger’s comments followed Intel’s most recent quarterly earnings report, which showed revenue of $18.35 billion.

Despite the good figures, however, the share fell due to a lower than expected forecast. Like other chipmakers, Intel is working on a solution to the problem, including investing heavily in facilities in the US and Europe. “We have really invested in these asset relationships, but that will limit build-out capacity for us and everyone else, but we believe we are better positioned than the rest of the industry,” Gelsinger said. Gelsinger’s prediction for 2024 is pessimistic, but other companies have noticed that too, but he’s not alone. As early as the end of 2021, Apple’s contract manufacturer Foxconn warned that the bottlenecks would last until the second half of 2022 and that only then an easing would be felt. This is no longer considered realistic.