Intel CEO Pat Gelsinger said during Taipei’s Computex trade show that the global semiconductor shortage could take years to be resolved, a problem that has closed down some auto production lines and is also being felt in other areas, including consumer electronics.
At a virtual session of the Computex trade show in Taipei, Intel CEO Pat Gelsinger said that the work-and-study-from-home trend during the COVID-19 pandemic had led to a “cycle of explosive growth in semiconductors” that has placed a huge strain on global supply chains, according to Reuters.
“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.”
Intel, the world’s largest chipmaker by revenue, has been working to mitigate the chip shortage, according to SCMP.com. In March, Intel announced a $20 billion plan to expand its advanced chip manufacturing capacity, building two factories in Arizona and opening its plants 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,” Gelsinger said, without elaborating, reports FOX News.
Intel’s plans will likely be seen as a direct challenge to Taiwan Semiconductor Manufacturing Co Ltd, and South Korea’s Samsung Electronics Co Ltd, according to Reuters.
The two companies have come to dominate the semiconductor manufacturing business, moving their centers of operation out of the U.S. to Asia, where more than two-thirds of advanced chips are now manufactured.
