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Intel Can’t Stop Spreading Awful News About the Chip Shortage

If you’re trying to get an accurate estimate as to when the chip shortage could come to an end, the best option is to ask someone that’s involved in the tech industry.
The production of cars could continue to struggle for at least two more years 6 photos
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Intel, for example, is very often the go-to company for such forecasts, not only because it’s one of the biggest names in the chip industry, but it’s also one of those that are investing massively in capacity in an attempt to help ease off the crisis.

Unfortunately, however, Intel doesn’t expect the chip shortage to come to an end too soon.

CEO Pat Gelsinger has recently come up with a prediction that was awful news for the car industry. The current constrained chip inventory, Gelsinger said, would remain a global problem until 2024, as chipmakers wouldn’t be able to deal with the ongoing challenges despite their investments in capacity.

And now, in a new interview, Gelsinger not only reiterated the same forecast but also provided additional context.

Explaining that the world is only halfway through when it comes to the chip crunch (so the 2024 prediction is still on), Gelsinger said that the biggest problem right now isn’t necessarily to build capacity but to actually find the manufacturing equipment for the chip production lines.

This is something that the entire industry is fighting with, Intel explains, as building the fabs is happening as we speak, but given the lack of equipment, producing the chips takes place at a slower pace than planned.

The car industry expects the chip inventory to improve towards the end of the year, but if Intel’s CEO is right, then the constrained supply would return in the first months of 2023.

And unfortunately, there’s a chance it would remain a big headache for the entire market for two more years, though given the unpredictable market, it’s impossible to tell for sure everything would come to an end in 2024.

 
 
 
 
 

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