Intel is pessimistic about the chip shortage

The boss of Intel believes that the shortage of components is well on its way to last a few years. These pessimistic remarks must however be put in context: the firm seeks to attract potential customers by offering them a reliable source of supply.

An Intel chip // Source: Pok Rie on Pexels

Several new technology sectors fear a shortage of components caused by the upheavals of 2020 and poor anticipation of demand. A new peak in Covid-19 contamination is also hitting Vietnam and affecting suppliers to Samsung and Apple. For its part, Intel is pessimistic – or realistic depending on the point of view.

The crisis is bogged down

The group’s boss, Pat Gelsinger, took advantage of a speech ahead of the Computex trade fair in Taipei to share his fears. The head of Intel thus recalls that the confinement and teleworking during the Covid-19 pandemic led to a ” explosive growth cycle in the semiconductor industry Which has undermined global supply chains.

« But if the industry has taken action to address the short-term constraints, it will take a few more years for the ecosystem to address the shortages of foundry capacity, substrates and components. Pat Gelsinger says. This is not the first time that the boss of Intel shares this kind of analysis. He already made the same speech in mid-April during an interview with the Washington Post.

Intel’s ambitions

However, the businessman is not defeatist, far from it. Having taken the reins of Intel since January only, it displays a lot of ambition. In March, the firm announced an investment of $ 20 billion for the construction of new factories (three in the United States, one in Europe). Ultimately, the goal is to burn chips not only for one’s own account (as always) but also for other market players.

By predicting a shortage of components over several years, Intel is probably trying to convince its potential customers to turn to it for a good supply.

Source

Intel pessimistic chip shortage

 
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