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Intel to Build Car Chips to Help Deal With the Shortage

The chip shortage is far from over, and like the other industries, the automotive sector has been hit hard by the lack of semiconductors, with several companies turning to temporary production shutdowns until the necessary supply was ready.
Intel says it expects its first car chips to be ready in up to 9 months 1 photo
U.S. President Joe Biden met with representatives of carmakers, such as GM and Ford, as well as with officials in the semiconductor supply chain to discuss the chip shortages and ways to address it as fast as possible. He explained the industry needs to “step up the game” especially in research and development and manufacturing.

Following the meeting, Intel CEO Pat Gelsinger confirmed his company is ready to step into the car chip manufacturing business. While it typically takes a few years to prepare for such an expansion, the whole thing is supposed to happen in less than nine months.

We’re hoping that some of these things can be alleviated, not requiring a three- or four-year factory build, but maybe six months of new products being certified on some of our existing processes. We’ve begun those engagements already with some of the key components suppliers,” he said according to Reuters.

No decision has been made just yet, but Intel claims the manufacturing of chips aimed at the automotive industry could take place at its factories in Oregon, Arizona, New Mexico, Israel, or Ireland.

The global chip shortage started last year following the lockdowns announced by many governments around the world, as the sales of electronics mainly skyrocketed because most people started working remotely. Sales of PCs, tablets, and other devices increased massively in the first half of the year and remained solid throughout the rest of the year, with chipmakers worldwide struggling to meet their clients' orders.

Several companies in the automotive biz temporarily suspended their production due to the lack of chips, including Ford, GM, and Renault.

 
 
 
 
 

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