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Intel CEO now claims that the chip shortage will gravitate towards 2024

This comes six months after projecting that the worldwide chip shortage will continue until at least 2023

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Intel CEO now claims that the chip shortage will gravitate towards 2024

Intel CEO Pat Gelsinger now, six months after projecting that the worldwide chip shortage will continue until at least 2023, says that the semiconductor industry may still face supply shortages until 2024.

In a statement to CNBC, Intel CEO Pat Gelsinger said, “We believe the overall chip shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged.”

But, while that may seem a touch of doom and gloom, keep in mind that the “chip shortage” is a complicated, dynamic phenomenon that does not affect every type of chip at every moment. In contrast, Intel’s own chipsets are performing rather well. Gelsinger, during the company’s Q1 2022 earnings call on Thursday, said, “For the first time in years, Intel fabs and substrate supply are on the verge of fulfilling our customers’ demand.”

Gelsinger’s saying, “the chip shortage will drift towards 2024,” partly refers to the semiconductor industry’s capability to fulfil the demand for new products manufactured on new lines, rather than merely the current ones. Intel’s CEO, on the earnings call, stated, “We expect the industry will continue to see challenges until at least 2024 in areas like foundry capacity and tool availability as an IDM (identity management).”

In other words, while CPUs, GPUs, and gaming consoles were among the most visible commodities affected by shortages, it appears that supply and demand are already beginning to balance. However, networking chip makers are still facing a substantial chip shortage. Gelsinger cited ethernet as a particularly challenging “ecosystem supply restriction” that has hampered PC sales.

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