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Intel Revises Chip Shortage Forecast

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semiconductor chip

Months ago, Intel predicted the chip shortage would continue until 2023.  Now, Intel CEO Pat Gelsinger says the semiconductor shortage could drag on until 2024.

One reason for the delay is that the shortage has now reached the manufacturing equipment necessary to produce chips, the CEO told CNBC.

He said:

“That’s part of the reason that we believe the overall semiconductor 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.”

At of last year, the worldwide chip shortage cost the US $240 billion, said Engadget, referencing CBS News.

Intel is planning to build two chip factories in Arizona and one in Ohio.

Separately, the largest carbide chip factory just opened in upstate New York by Wolfspeed. Carbide chips are used in electric vehicles and 4G and 5G industrial equipment. The plant will create over 600 jobs.

As for chip shortages related to the car audio and performance audio markets, SEMA recently issued a report (after surveying industry members in March and April) that found most companies expect supply issues to continue into 2023 and possibly the third quarter of that year or longer.

Source: Engadget
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