Intel CEO Pat Gelsinger told CNBC on Friday that he expects the semiconductor shortage to last until 2024.
In an interview with CNBC, Gelsinger said the global semiconductor crisis could be prolonged by the limited availability of basic construction tools, creating an obstacle to expanding the capacity levels needed to meet growing demand.
“This is part of the reason why we believe that the total shortage of semiconductors will be extended until 2024, from our previous estimates for 2023, precisely because the shortages have now hit the equipment,” Gelsinger said.
The need for more semiconductors has been growing for years as the world becomes more and more digital and chips are inserted into everything from smartphones to cars and washing machines.
The coronavirus pandemic caused a severe shortage, as factories shut down at a time when demand for consumer electronics was taking off. The shortage had significant economic consequences and helped the US economy experience the sharpest inflation since the early 1980s.
Since Gelsinger took over as CEO in February 2021, Intel has announced a series of significant investments to geographically diversify chip manufacturing. The company spends significant sums on the construction of semiconductor plants in the US and Europe. Most of the world’s production capacity is located in Asia.
Source: Capital
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