Intel CEO Pat Gelsinger Says Semi Shortage Could Last "A Couple Years"

Brace for more pessimistic news about the global semiconductor shortage...

Intel is now going on the record and doubling down on statements that its CEO made on 60 Minutes earlier this year, stating that it could take "several years" for the current supply shortage of semiconductors to be resolved. 

CEO Pat Gelsinger said that the pandemic-inspired "work from home" trend caused a "cycle of explosive growth in semiconductors", according to Reuters

"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 commented. 

Gelsinger also reiterated Intel's plans to expand: "We plan to expand to other locations in the U.S. and Europe, ensuring a sustainable and secure semiconductor supply chain for the world."

Intel is trying to keep pace with Samsung and Taiwan Semiconductor - both of which also have plans to expand, including into the U.S. - to increase semi-production. 

We noted in mid-May that TSMC had plans of "doubling down" and vastly increasing its investment for production in Arizona. The chipmaking giant said at the time it was "weighing plans to pump tens of billions of dollars more into cutting-edge chip factories in the U.S. state of Arizona than it had previously disclosed".

The company had already said it was going to invest $10 billion to $12 billion in Arizona. It now appears to be mulling a more advanced 3-nanometer plant that could cost between $23 billion and $25 billion. The changes would come over the next 10 to 15 years, as the company builds out its Phoenix campus.

Intel CEO Pat Gelsinger

The move would put TSMC in direct competition with Intel and Samsung for subsidies from the U.S. government. President Joe Biden has proposed $50 billion in funding for domestic chip manufacturing. 

1 2
View single page >> |

Disclosure: Copyright ©2009-2021 ZeroHedge.com/ABC Media, LTD; All Rights Reserved. Zero Hedge is intended for Mature Audiences. Familiarize yourself with our legal and use policies ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.