Intel confirms chip supply shortage will last for a long time

ILUSTRASI. Logo Intel. REUTERS/Mike Blake

Reporter: Adrian Octauian | Editor: Tendi Mahadi

KONTAN.CO.ID – TAIPEI. Intel Corp. says it is lacking chip that is happening globally today still need several years to overcome. In fact, this problem has hampered the production of cars and is also felt in other areas, including electronic devices.

Intel Corp CEO Pat Gelsinger said that the trend of working and studying from home during the COVID-19 pandemic has led to a huge growth in demand for chips. This ultimately puts great pressure on global supply chains.

“But while the industry has taken steps to address the short-term constraints, it will still take several years for the ecosystem to overcome the lack of casting capacity, substrates and components,” Gelsinger said Reuters, Tuesday (1/6).

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In an interview with The Washington Post in mid-April, Gelsinger said the shortage would take several years to subside. Meanwhile, they are planning to start producing chip in six to nine months to address shortages at US auto plants.

In March, Intel also announced plans to invest US$20 billion to expand its advanced chip production capacity. They will build two factories in Arizona and open their factories to outside customers.

“We plan to expand to other locations in the US and Europe, ensuring a sustainable and secure semiconductor supply chain for the world,” added Gelsinger.

The plan also challenges two other companies in the world that can manufacture the most advanced chips, including Taiwan Semiconductor Manufacturing Co Ltd (TSMC) and South Korea’s Samsung Electronics Co Ltd.

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