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Intel reiterates chip supply shortages could last several years By Reuters

© Reuters. FILE PHOTO: An Intel Tiger Lake chip is displayed at an Intel information convention in the course of the 2020 CES in Las Vegas, Nevada, U.S. January 6, 2020. REUTERS/Steve Marcus

TAIPEI (Reuters) – Intel Corp (NASDAQ:)’s CEO mentioned on Monday it could take several years for a world scarcity of semiconductors to be resolved, an issue that has shuttered some auto manufacturing traces and can be being felt in different areas, together with shopper electronics.

Pat Gelsinger advised a digital session of the Computex commerce present in Taipei that the work-and-study-from-home development in the course of the COVID-19 pandemic had led to a “cycle of explosive growth in semiconductors” that has positioned big pressure on world supply chains.

“But while the industry has taken steps to address near term constraints it could still take a couple of years for the ecosystem to address shortages of foundry capacity, substrates and components.”

Gelsinger had advised The Washington Post in an interview in mid-April the scarcity was going to take “a couple of years” to abate, and that it deliberate to start out producing chips inside six to 9 months to handle shortages at U.S. automotive vegetation.

Intel introduced a $20 billion plan in March to broaden its superior chip manufacturing capability, constructing two factories in Arizona and opening its vegetation to exterior prospects.

“We plan to expand to other locations in the U.S. and Europe, ensuring a sustainable and secure semiconductor supply chain for the world,” Gelsinger mentioned, with out elaborating.

Intel’s plans could immediately problem the 2 different corporations on the planet that may take advantage of superior chips – Taiwan Semiconductor Manufacturing Co Ltd (TSMC) and South Korea’s Samsung Electronics (OTC:) Co Ltd.

The two have come to dominate the semiconductor manufacturing enterprise, transferring its centre of gravity from the United States, the place a lot of the know-how was as soon as invented, to Asia, the place greater than two-thirds of superior chips are actually manufactured.

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