Chip supply shortages could last several years, Intel warns


Pat Gelsinger, Intel Corp’s CEO, said on Monday it could take several years for a global shortage of semiconductors to be resolved, a problem that has staggered auto production lines and consumer electronics.

The work-and-study-from-home trend during the COVID-19 pandemic has led to a “cycle of explosive growth in semiconductors” that has placed huge strain on global supply chains, Gelsinger told a virtual session of the Computex trade show in Taipei.

Gelsinger had told The Washington Post in an interview in mid-April the shortage was going to take “a couple of years” to abate, and that it planned to start producing chips within six to nine months to address shortages at U.S. 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.

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.

The duo have come to dominate the semiconductor manufacturing business, moving its centre of gravity from the United States, where much of the technology was once invented, to Asia, where more than two-thirds of advanced chips are now manufactured.