Intel CEO Pat Gelsinger says semiconductor shortages could drag on for another two years

Intel’s CEO, Pat Gelsinger, has said that chip shortages could drag on into 2024 due to a shortage of manufacturing tools. The hit to semiconductor supplies began in 2020 when factories in manufacturing centres went into lockdown due to the coronavirus, while these facilities are producing more hardware again now, the demand for semiconductors has grown too with the invention of new smart technologies.

Commenting on the crisis, Gelsinger said:

“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.”

Aside from being used in computers and phones, people are demanding smart home goods and vehicles with infotainment systems, all of which rely on semiconductors, meaning factories must churn out more semiconductors. The demand for some of these more tertiary goods grew during the pandemic so it’s taking time for the market to adjust.

The over-dependence on supplying chips from a few Asian nations is not helping matters either, for this reason, Intel is diversifying geographically. In January, the company announced that it was bringing semiconductor plants to Ohio which will also create thousands of well-paying jobs in the area.

Intel CEO Pat Gelsinger says semiconductor shortages could drag on for another two years