Here's Why Intel CEO Believes Chip Shortage To Last Until 2024

After predicting the global chip shortage would last until 2023, Intel Corporation (NASDAQ: INTC) CEO Pat Gelsinger is now suggesting the shortage could last until at least 2024. 

Gelsinger thinks that the industry can meet the demand for new products being built on new lines, not just existing ones; hence, the chip shortage will stretch into 2024. 

Talking about Intel’s position on handling the shortage, Gelsinger said, “For the first time in years, Intel fabs and our substrate supply are close to meeting our customers’ demand.”

Also Read: Tower Semiconductor Stock Soars As Intel Scoops It At 60% Premium

“We expect the industry will continue to see challenges until at least 2024 in areas like foundry capacity and tool availability as an IDM,” he said. 

CPUs, GPUs, and game consoles are some high-profile items hit by the chip shortages. In addition, networking chip vendors are also seeing significant chip shortages. 

“We believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit the equipment, and some of those factory ramps will be more challenged,” Gelsinger added. 

Earlier in January, the company announced that it will spend $20 billion on a chipmaking hub on the outskirts of Columbus, Ohio. 

Intel will also begin constructing two fabrication plants on a 1,000-acre site in New Albany, likely to be operational by 2025.

Also read: Intel Shares Its Ambitious EU Expansion Plans

Photo: Julia Hiltscher on flickr