Intel CEO: Chip shortage will reach its worst state in the second half of the year

Latest update time：2021-08-31 19:32

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Intel Corp. Chief Executive Officer Pat Gelsinger predicts the semiconductor shortage, which has widely affected many industries including automobiles and consumer electronics, will reach its worst in the second half of this year and then begin to improve.

“I don’t expect the chip industry to return to healthy supply and demand conditions until 2023,” he said in an interview. “For a lot of industries, I think it’s still likely to get worse before it gets better.”

Chips are the core components of all modern electronics. As the economy rebounds from the epidemic, there is a huge demand for chips. Gelsinger said that the epidemic blockade and changes in the way many people work around the world have accelerated the transition to digital systems, further straining the semiconductor industry's ability to meet massive orders.

Pat Gelsinger

Intel, the world's largest chipmaker, makes most of its revenue from chips for personal computers and servers, as well as processors used in core equipment for data centers and corporate networks. Gelsinger said Intel owns its own chip factories, so it can meet demand better than other companies that outsource production, but the supply of other computer components can't keep up.

Gelsinger expects the chip industry to grow over the long term. Over the next decade, he said, a rise in uses for chips — including 5G phone systems, electric vehicles and widespread artificial intelligence — will drive strong demand.

Source: Sina Finance

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