Wednesday, May 04, 2022, 13:35 Economy

Intel CEO: Chip Crisis Lasts Considerably Longer than Previously Feared

Lockdowns in China, ongoing chip shortages and disrupted supply chains: For Apple and other tech companies, as well as traditional industries, the situation has been anything but easy for months. This is reflected in long delivery times for Macs, iPhones and iPads, among other things. Car buyers may even have to wait several months for their new vehicle. In addition, prices for many products containing semiconductors of all kinds have risen sharply. So far, a number of companies, such as Apple's contract manufacturer Foxconn, have assumed that the situation should ease considerably in the second half of this year. This assessment is now clearly contradicted by the head of Intel.

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Pat Gelsinger: End of chip crisis not until 2024
Pat Gelsinger, who has been at the helm of the US chipmaker since February 2021, does not expect the semiconductor crisis to end before 2024. The Intel CEO said this in an interview with CNBC. He thus corrected an earlier forecast by his company: just a few weeks ago, he said, it was assumed that the global situation would normalize as early as 2023. Gelsinger also contradicted the latest assessment of the U.S. government to the TV station. In January of this year, the White House had predicted an end to the crisis by the end of 2022. As a reason for his pessimistic stance, the Intel CEO cited, among other things, the fact that machines for chip production are currently hardly available. Production can therefore not be expanded as much as the increasing demand requires in the foreseeable future.

Intel sees itself well equipped despite continuing difficulties
Despite these difficulties, with which the company he leads naturally also has to contend, Gelsinger is confident about Intel's future. The CEO said that billions are being invested in new production facilities and in relationships with equipment suppliers. The U.S. company is known to be planning to build a new chip factory in Magdeburg, among other places. However, this and several other projects could take longer than planned due to delivery delays for the required machines such as high-performance photolithography systems. According to Gelsinger, all other semiconductor manufacturers are also suffering from the situation. However, Intel is in a better position than the rest of the industry, said the head of the processor giant, without naming names.

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