The head of Intel said that the shortage of semiconductors will last for several more years

The head of Intel said that the shortage of semiconductors will last for several more years

According to the head of Intel Corporation Pat Gelsinger (Pat Gelsinger), the industry will not be able to cope with the shortage of semiconductor products for several years. Intel itself is currently busy upgrading some of its factories to increase the production of chips used in the automotive industry.

Intel
Intel

In a recent interview with CBS News, Gelsinger noted that it would take the company several months to ease the pressure on the component supply chain. “It will take us a couple of years to catch up with the growing demand in all segments of the industry,” said Gelsinger.

The demand for semiconductors rose sharply in 2020 when people began to buy computers and other devices against the backdrop of quarantine. However, it turned out to be difficult to satisfy, including because of the closed factories, where semiconductor products are produced, against the backdrop of the pandemic. Many companies worldwide expect supply shortages due to logistics problems and chip shortages to continue throughout 2021.

Gelsinger said his company’s share of the global semiconductor market has now dropped to 12%. A quarter of a century ago, Intel accounted for 37% of the world’s production of these products. He noted that Intel is currently the only manufacturer of high-end and advanced chips.

“Anyone who looks at the supply chain today will say there is a problem. This is a huge and critical industry. And we want a part of it to be on American soil. These are new jobs; this is control over our long-term technological future ”, – commented the head of Intel.

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The semiconductor shortage has hit all areas of the industry, from tech companies to automakers. The latter, for example, was forced to reduce the volume of cars produced. The American company Ford previously announced that the crisis would cut production of its cars by 1.1 million units by the end of this year. Jaguar Land Rover, Volvo Group, and Mitsubishi Motors have recently joined the list of companies that have suspended their factories.

Meanwhile, Mark Liu, head of Taiwan Semiconductor Manufacturing Co. (TSMC), said in an interview with CBS that his company, having learned at the end of last year about the impending shortage of chips, tried to produce many chips for the auto industry.

“We are currently covering two months of demand so that we can meet the minimum needs of our customers by the end of June,” Liu said.

In his opinion, the supply deficit can be eliminated only by the beginning of 2022. “There is a time lag. In particular, in the supply of chips for car manufacturers, because the supply chain is very long and complex, ”said Liu.

He also spoke on the issue that American companies rely on 75% of the supply of components from Asia. “The point here is not whether the components are produced in Asia or not in Asia. Due to the pandemic, the deficit will be observed everywhere, no matter where the production is located. “

 

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