The global component shortage will not end soon, it may last at least until 2023 according to Intel’s CEO.
Intel CEO says component shortage to last until 2023
Now that Black Friday is approaching and Christmas is not too far away, there is even more speculation about the global chip shortage that is affecting the industry. This is a crisis that has been going on for some time and may last much longer. There are several guesses as to how long it will last, but all indications show that it will be at least until 2023. Lately AMD’s CEO even talked about the matter.
NVIDIA and TSMC were talking about the crisis, they also expect it to last until 2023 and earlier this month the European Union also pointed to at least another year and a half. Now Intel’s CEO has spoken and he points in the same direction.
Because of the recent presentation of Intel’s accounts, the CEO of the company has been interviewed on CNBC.
Pat Gelsinger: “We’re in the worst of it now, every quarter next year we’ll get incrementally better, but they’re not going to have supply-demand balance until 2023.”
He is confident that the industry will improve as the months go by but this requires investments in factories.
These statements come after the presentation of the third quarter accounts. Although they have been generally positive, they have also suffered a 5% reduction in revenue from notebook computers. The executive blames these figures on the lack of parts.
He also says that it is no longer just a shortage of a particular type of chip, but the combination of parts they call “match sets, where we may have the CPU, but you don’t have the LCD, or you don’t have the Wi-Fi.”
The date when he expects the shortage to end still seems far off, but at least it is a comfort that he considers that we are at the worst point, because that would mean that the situation will slowly improve.