Chip shortage may persist until 2024, according to Intel CEO

Intel CEO Pat Gelsinger has touched on his outlook on the global chip shortage heavily affecting the tech and semiconductor industry. Gelsinger now expects the shortage to last until 2024

During an interview with CNBC’s TechCheck, Gelsinger states that due to the constrained availability of critical manufacturing tools, the chip shortage could last well beyond this year. The ability to meet ongoing demand proves to be an ongoing obstacle.

“That’s part of the reason that we believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged,” Gelsinger said in the interview.

The global chip shortage first began during the COVID-19 pandemic. Chip manufacturing factories continue to face numerous disruptions and closures. Demand continues to rise as the need for semiconductors for consumer tech products is never-ending.

Gelsinger is still relatively new to Intel’s CEO role. He took over in February 2021 and invests heavily in diversifying chip manufacturing around the globe. Intel invests significantly in establishing semiconductor facilities in the U.S and Europe. Though, Asia is home to most factories.

“We’ve really invested in those equipment relationships, but that will be tempering the build-out of capacity for us and everybody else, but we believe we’re positioned better than the rest of the industry,” Gelsinger said.

The shortage of chips heavily affects the ability to readily purchase Intel chips and Apple products like the Mac. Sony also continues to struggle with demand for its PlayStation 5 as well. If Gelsinger’s analysis is correct, these trends could continue to escalate into 2024 at the very least.

Image credit: Intel

Source: CNBC