Intel CEO Warns That Chip Shortages Could Persist until 2023

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Image: Intel

Intel CEO Pat Gelsinger has warned that the global chip shortage may persist for quite a bit longer than anyone might have anticipated. Speaking during yesterday’s earnings call regarding Intel’s Q2 2021 financial results, Gelsinger reminded investors that the industry was still burdened by the lack of key components due to immense customer demand. Although the supply chain is expected to steadily improve over the course of the year, Gelsinger gave the dreary estimate that it could take “one to two years” before the industry reverts to a normalized state. That means select products might be tough to find without constant monitoring until 2023. Gelsinger also pointed out that Intel would have had more impressive results for Q2 if it weren’t for the shortages; revenue only grew 2 percent YoY for the company last quarter.

Image: Intel

While I expect the shortages to bottom out in the second half, it will take another 1 to 2 years before the industry is able to completely catch up with demand. IDM 2.0, which combines our internal manufacturing capacity with the use of third-party foundries, best positions us to weather these challenges and work with our ecosystem partners to build a more resilient supply chain.

Source: Intel (via Seeking Alpha)

Tsing Mui
News poster at The FPS Review.

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