Although the global chip supply shortage has already overstayed its welcome, Intel believes that there is still a long way to go. Pat Gelsinger, CEO of the American chip-making giant, believes that the shortage could last up to 2 years.
The executive made a statement earlier this week while commenting on the company’s recent earnings report. He said that it has been a “pivotal year for Intel” after the company reported a weaker earnings report. He added that the chip shortage has already affected various markets and the constraints will persist even after additional capacities are built.
These additional capacities may be able to cushion the blow from the severe shortage and might allow the supply to catch up with demand. However, the CEO further added that.
It will take a while until people can put more capacity in the ground. It’s just the way it is when you’re building new factories.
Recently, the newly elected US President Joe Biden met with various tech giants to address the global shortage issue. He pledged to invest $50 billion to help recover the semiconductor industry. It remains to be seen whether it will prove good enough to revive the global chip market as Pat Gelsinger notes “The investment needed at the scale required is immense.”
