Intel Says Chip Supply Shortages Could Last For Many Years

In a somber announcement on Monday, global chip maker Intel’s CEO said that the global shortage for semiconductors could last for several years.

The company’s chief executive Pat Gelsinger told a virtual session of the Computex trade show in Taipei this week that the work-and-study-from-home trend during the COVID-19 pandemic had led to a “cycle of explosive growth in semiconductors.”

This as a result has placed huge strain on global supply chains.

“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,” said Gelsinger.

“We have been working diligently with our partners… to address constraints and increase output to meet demand, and we are acting to help ensure capacity to meet the world’s needs for this new era… 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,” he said at a virtual session at the Computex event.

It was last month that Gelsinger told the Washington Post that the shortage would take a “couple of years” to abate. Intel had said it planned to start producing chips within six to nine momnth to address the shortages that have happened at car plants in the U.S.

In March the company had announced a staggering $20 billion plan to advance its chip manufacturing capacity.

“We’ve already announced more than USD 20 billion of new investment in our foundry capability. This includes large scale capacity expansion in Arizona, in support for advanced semiconductor manufacturing technologies in New Mexico. We plan to expand to other locations in the US and Europe, ensuring a sustainable and secure semiconductor supply chain for the world,” Gelsinger said.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.