Intel: chip shortage epilogue could wait several years

  •   07/06/2021 - 08h34
  •   DEHOUI Lionel

The story of the chip shortage is likely to remain in the news for several months. This is what we should remember from the recent statements made by the American group Intel. As a reminder, this situation has caused the closure of some automotive production lines. Indeed, the company believes that it will take several more years to find a final resolution to this semiconductor crisis. In addition, the company is taking steps to address the shortage.

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Intel: chip shortage epilogue could wait several years

Semiconductor shortage still expected to last a long time

Several industries have been affected by the global semiconductor shortage in recent months. This situation has forced many companies to slow down their production. However, this crisis which continues to prevail is far from knowing its epilogue. According to Pat Gelsinger, the CEO of Intel Corp, it could last for several more years.

Indeed, the containment measures due to the Covid-19 pandemic have caused a trend of working from home. This has led to an explosion in the semiconductor growth cycle. As a result, the supply chain world has been under great pressure.

On the other hand, the industry has adopted measures to address the challenges of this crisis in the short term. However, the ecosystem will need a few years to overcome shortages in foundry capacity, substrates and components, Gelsinger said.

In a statement in mid-April, the man estimated that his group plans to start chip production over a period of six to nine months. This forecast is intended to address shortages at U.S. auto plants.

 

Increase in chip production capacity

In March 2021, Intel had announced a plan to expand its advanced chip production capacity. For the implementation of this project, the American group plans to build two plants in Arizona. At the same time, it plans to open its factories to outside customers.

Also, the world's leading semiconductor manufacturer believes that it plans to expand to other locations in the United States and on the European continent. In this way, the company will ensure sustainability and security of the supply chain on a global scale. Furthermore, it should be noted that Intel's plan to deal with this chip shortage is estimated to be worth $20 billion.

 

Intel on track to challenge other industry giants

By carrying out its plan, Intel could score a big blow against its competitors in the semiconductor market. Indeed, the group's plans could directly challenge the two other companies in the world that are capable of producing the most advanced chips. These are South Korea's Samsung Electronics Co Ltd and Taiwan Semiconductor Manufacturing Co Ltd.

Both companies have come to dominate the semiconductor production sector. In particular, they revolutionized the market with new directions. They have shifted the centre of gravity of the industry from the United States to Asia. Asia is now the site of more than two-thirds of the world's advanced chip manufacturing.