Global chip shortage may continue for many more years – Intel

chip shortage

There is currently a global panic in the chip industry. The global chip shortage has been on for many months. As of now, many automakers can not get chips to complete their products. The likes of Volkswagen, General Motors, Ford, and others are all affected. Well, the global chip shortage is not just in the automotive field alone. It is beginning to affect other manufacturing industries. Regarding the current global chip shortage in many fields, Intel CEO, Pat Gelsinger, believes that it may continue for two years or more.

global chip shortage

Pat Kissinger told analysts that the current challenges facing the chip industry are caused by the shortage of foundry capacity, substrates, and parts. They expect the industry chain to invest heavily in solving the shortage of chips, which will take several years.

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This is not the first time that Pat Kissinger has publicly stated that the current global chip shortage will continue for many years. In an interview in the middle of this month, he said that he believes that it will take many years for the chip shortage problem to be completely resolved. He believes this because it takes several years to build new capacity. 

In an interview earlier this month, Pat Kissinger also stated that they are able to help. They have set up a chip foundry department in-house to be responsible for chip foundry matters. They are also in contact with automotive chip designers and plan to start manufacturing automotive chips within 6 to 9 months.

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Global chip shortage to improve soon – TSMC

However, TSMC is positive that the global chip shortage situation will improve soon. TSMC, the world’s largest chip foundry, announced in January this year that they will provide automotive chip suppliers with capacity support as their top priority.

TSMC’s CEO, Wei Zhejia, claims that the company is trying its best to support customers due to global chip shortages. In order to help, the company will provide capacity support for automotive customers as its top priority. It will also cooperate with customers in other fields to reallocate the capacity of the fab.

According to TSMC’s CEO, after the production of automobile chips, it will take some time to be used in automobile production. This is because the automotive supply chain is long and complex. From chip production to automotive chips, it takes at least 6 months, with multiple suppliers in between. This complex situation will make the recovery process also very complex.

Source/VIA :
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