Chip shortages are to continue, but Intel is in a better position than most companies, says Pat Gelsinger
Intel CEO becomes now believes that chip shortages will last into 2024.
In an interview with CNBC, Intel CEO Pat Gelsinger provided the first outlook for chip shortages for 2023 and beyond. The company now expects that the supply of semiconductor equipment will still suffer from insufficient supply into 2024.
Despite overall good availability of PC components, the shortages are now hitting manufacturing and factory equipment. That alone is the main reason why Intel expect semiconductor shortages to last for another year.
“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,”
— Pat Gelsinger, Intel CEO to CNBC
Since Pat Gelsinger took the seat as Intel’s Chief Executing Officer, the company has made several announcements in regard to its foundry plans. That includes new multibillion fabs and its foundry services strategy to allow other companies to Intel to manufacture their chips.
With that in mind, Intel is claiming to be in a better position than most companies, which will depend on the capacities and components from 3rd parties.
“We feel like we’re better positioned than most. The combination of our internal capacity as well as our leverage of foundries — we’re just better positioned, and that’s part of the structural advantage that Intel has.”
— Pat Gelsinger, Intel CEO to Bloomberg
Intel CEO comments are contrary to AMD CEO remarks from September last year. Dr Lisa Su has said that shortages should ease in second half 2022. Both companies are now expected to make numerous product launches in the coming months, some of which will feature new fabrication nodes.