Intel CEO Pat Gelsinger says chip shortage to last ‘couple of years’

The tech industry suffers from the chip shortage. A lack of processors whose ravages will be felt for years to come, according to Intel.

Pat Gelsinger, Intel CEO, reiterated on Monday his vision of the shortage of processors that the industry suffers globally. During a virtual session at the fair Computex and Taipei has stated that the problem could take years to resolve.

“Although the industry has taken steps to address short-term constraints, it could still take a couple of years for the ecosystem to address shortages of foundry capacity, substrates and components.“ Gelsinger explained.

This is how he reiterates the statements he made in April in an interview for The Washington Post. In it he explained how the company intends to deal with this shortage in the long term and transform the supply chain into a more sustainable system.

There are dozens of different Intel CPUs, each with a nomenclature. The numbers and letters indicate the power and generation of the CPU.

Intel has announced a $ 20 million plan this March to expand its manufacturing capacity by opening two new factories in Arizona. They also intend to settle in Europe “ensuring a sustainable and safe semiconductor supply chain for the world“ said Gelsinger. With this maneuver they challenge their two main Asian competitors, TSMC in Taiwan and Samsung in Korea.

The leaders of both continents, the United States and Europe, have expressed concern about the concentration of chip manufacturing in Asian countries with the new tensions with China After the announcement of this new strategy, Intel shares rose 7.5%, according to Reuters.

These measures, however, do not address other issues that contribute to that chip shortage, and the benefits from those two new factories will take time to be felt in the industry. The other companies, NVIDIA and TSMC, agree with Intel that the effects will spread over the next few years.

This problem has been noticed for several years, although the boom in cryptocurrency mining and telecommuting have compounded the lack of components. The tendency to work and study from home during the COVID-19 pandemic had led to a “explosive growth cycle in semiconductors “That has put great pressure on the global supply chain, according to Gelsinger.