Daily Management Review

Global Chip Shortage Could Take Several Years To Resolve: Intel Chief


Global Chip Shortage Could Take Several Years To Resolve: Intel Chief
The global shortage of semiconductors has caused shit breaks in production of car of many global automakers while it is also affecting production in other industries such as in the consumer electronics.
However the problem is likely to remain for several years before it can be completely resolved believes the CEO of Intel Corp.
There Covid-19 pandemic has given rise to the work and study from home trend which has resulted in a "cycle of explosive growth in semiconductors" which has put the global supply chains on huge strain, said Pat Gelsinger, Intel’s CEO, at a virtual session of the Computex trade show in Taipei.
"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," Gelsinger said.
Back in the middle of April this year, Gelsinger had told The Washington Post in an interview that it would take “a couple of years” for the global semiconductor shortage to abate and had added that the company plans to start manufacturing chips within the next six to nine months so that the shortages of semiconductors in the car industry ion the United States could be addressed.
In March this year, an investment of $20 billion was announced by Intel for the expansion of its advanced chip manufacturing capacity as well as for construction of two factories in Arizona. The company also plans to open its plants to outside customers.
"We plan to expand to other locations in the U.S. and Europe, ensuring a sustainable and secure semiconductor supply chain for the world," Gelsinger said, without elaborating.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC), and South Korea's Samsung Electronics Co Ltd – the two other companies of the world that posess the technology and the knowhow of making the most advanced chips, would be facing a direct challenge by the  from Intel because of its plans for expansion in making advanced chips.
TSMC and Samsung Electronic currently are the leaders in the semiconductor manufacturing industry for the entire world and their success has moved the centre of gravity of the global chip industry away from the United States which was country where much of the technology for making semiconductors was invented. Currently majority of the semiconductors – even the advanced ones, are made in Asia with more than two-thirds of advanced chips are now made.