Chip Shortage Will Stay for 'Couple of Years': Intel CEO

Intel Corp.'s new CEO Pat Gelsinger said that the ongoing global semiconductor chip shortage will likely last for a 'couple of years'. This comes as the shortage affects a wide range of industries such as telecom and consumer electronics.

Chip Shortage to Become a Major Problem?

In an interview with CBS News, Gelsinger said that the chipmaker is reworking some of its factories. This move comes to counter the chip shortage the auto industry faces. However, the strain on the supply is immense. That reflects in the fact that it will take at least several months for the pressure on the supply to even start letting up.

Gelsinger said that the chipmakers “have a couple of years until we catch up to this surging demand".

After the COVID-19 pandemic brought the world to a halt, demand for chips skyrocketed. People starting buying all sorts of gadgets during the pandemic, from medical equipment to consumer electronics. However, many of the plants had to be shut down thanks to the pandemic. That has made matching the demand hard for the chipmakers. Many companies are already bracing for the backlogs and constraints to continue through 2021.

This global shortage has dragged chipmakers in the limelight. Last month, the Biden administration told chipmakers that he has bipartisan support for government funding to address the chip shortage.

Gelsinger also pointed out that the semiconductor industry has been on the down in the US for the past 25 years. So much so that only 12% of the world’s semiconductor manufacturing is done in the country today. This figure is down from 37% 25 years ago.

Last week, Nokia CEO Pekka Lundmark also warned of disruptions in telecom industry due to global chip shortages.