Intel CEO says semiconductor shortage could last years

Intel’s new CEO Pat Gelsinger has said that there could be a global shortage of semiconductors for several years, according to a Reuters report. This will affect consumer electronics such as computers, smartphones, and tablets to the point where consumers could see prices increase despite people having less money due to the coronavirus.

Speaking at a virtual event at the Computex trade show today, the shift to working and studying from home due to the virus has put a lot of pressure on supply chains that can’t keep up with demand. Giving a prognosis of the situation, Gelsinger said:

“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.”

In terms of the short term measures that are being taken by Intel, the firm came up with a $20 billion plan a few months ago to expand its advanced chip manufacturing. The plan will see Intel build two new factories in Arizona and open up its plants to customers. In the future, Gelsinger envisions expanding production to more locations in the United States and Europe to create a “sustainable and secure semiconductor supply chain for the world.”