Intel: Investing to Eliminate Chip Shortage Takes Years

The American chipmaker Intel fears that the shortage of semiconductors could last another two years. According to new CEO Pat Gelsinger, the unprecedented demand for computer chips is putting the industry under severe pressure.

 

The global shortage of semiconductors has disrupted production in several industries, leading to temporary shutdowns of car factories and a reduced supply of electronic devices such as computers.

According to Gelsinger, who only took over the management of Intel in February, it will take a few years before whole capacity chips can be delivered again partly because the explosive demand is also putting pressure on the supply of materials and equipment.

The American company previously revealed that it would invest in two new factories in Arizona. “But it takes a few years to build capacity, which is always the case with new factories,” says Gelsinger.

Intel has long been the indisputable market leader in PC processors but has recently come under pressure. The company faced setbacks in introducing new 7 nanometer chips, which are more efficient. According to Intel, these problems have now been solved. Another pain point is that Apple now uses proprietary Silicon processors for Mac computers and no longer the Intel chips.

In the first quarter of this year, Intel posted sales of $ 19.7 billion, one percent less than a year earlier. Profits fell 41 percent to $ 3.4 billion. That lower result is partly due to a costly lawsuit that Intel is conducting. The company has raised expectations for 2021.

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