Chip shortage will last until 2024-Intel CEO

Intel CEO Pat Gelsinger has lowered his chip shortage forecasts and now expects the semiconductor industry to experience a supply shortage by 2024. He stated this in an interview with CNBC.

In his opinion, the global chip crisis may be delayed due to the limited availability of key production tools, which is an obstacle to expanding the capacity needed to meet increased demand.

"This is one of the reasons why we believe that the general shortage of semiconductors will now last until 2024, and not until 2023, according to our preliminary estimates. Because the shortage has now affected production equipment, " Gelsinger said.

The other day, the California-based chipmaker offered a forecast for the fiscal second quarter, which was lighter than Wall Street expected. However, its first-quarter earnings and revenue beat analysts ' expectations. On April 29, 2022, Intel shares fell by more than 6%.

It is known that the Covid-19 pandemic caused an acute shortage of chips, as factories were shut down, while demand for consumer electronics increased. The deficit had significant economic consequences and contributed to the fact that the US economy experienced the hottest inflation since the early 1980s.

Since Gelsinger took over as CEO in February 2021, Intel has announced a number of major investments to geographically diversify its chip production. The company spends heavily on building semiconductor plants in the United States and Europe. Most of the world's chip manufacturing capacity is now concentrated in Asia.

"We have really invested in this hardware relationship, but it will hold back capacity building for us and everyone else, but we believe that our position is better than that of the rest of the industry," said the head of Intel.

Earlier it was reported that Nintendo will reduce production of Switch consoles by 20% due to a shortage of semiconductors.