News & Analysis

Gelsinger warns chip shortage could last two more years

1st June 2021
Mick Elliott

Intel boss Pat Gelsinger says the shortage of semiconductors could last two more years.

Speaking at a virtual session of the Computex trade show in Taipei Gelsinger observed that the work-and-study-from-home trend during the COVID-19 pandemic had led to a "cycle of explosive growth in semiconductors" that has placed huge strain on global supply chains.

Many automotive companies have ceased production or reduced production as they struggle to source chip supplies.

"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," said Gelsinger

Gelsinger had told the Washington Post in an interview in mid-April the shortage was going to take "a couple of years" to abate, and that it planned to start producing chips within six to nine months to address shortages at US car plants

Intel has a $20 billion plan to expand its advanced chip manufacturing capacity, building two factories in Arizona and opening its plants to outside customers.

"We plan to expand to other locations in the US and Europe, ensuring a sustainable and secure semiconductor supply chain for the world," Gelsinger added.

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