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Intel issued a warning on Monday that the current chip shortage, which is affecting production in sectors such as automotive and consumer electronics, may last for years to come.
“While the industry has taken steps to respond to near-term constraints, it may still take a couple of years for the ecosystem to respond to the shortage of foundry capacity, substrates and components,” the technology company’s CEO Pat Gelsinger said in a virtual address at an industry trade show in Taipei.
Gelsinger noted that the rise of telecommuting and distance learning during the Covid-19 pandemic has created an “explosive growth cycle” in the semiconductor market, creating enormous pressure on the global supply chain.
Intel is working with its partners to ensure chip availability and investing to improve its production capacity, he said, but the entire supply chain must be up to speed to avoid individual bottlenecks holding back the industry as a whole.
“Lack of supply limits the growth we need to recharge the global economy,” he insisted.
Chips, have become an essential element in numerous industries beyond electronics and shortages have skyrocketed in recent months in the wake of high demand for computer equipment during the pandemic.
The lack of supply is creating major problems in sectors such as the automotive industry, with estimates suggesting that shortages will cost the industry some $110 billion this year.