Global chip shortage will continue into 2024, says Intel boss

Intel CEO Pat Gelsinger believes the worldwide chip scarcity will proceed into 2024.

Talking to CNBC, Gelsinger mentioned the scarcity may proceed attributable to constrained availability of key manufacturing instruments.

“That is a part of the rationale that we imagine the general semiconductor scarcity will now drift into 2024, from our earlier estimates in 2023, simply because the shortages have now hit tools and a few of these manufacturing unit ramps shall be extra challenged,” he mentioned.

Gelsinger’s feedback observe a lower-than-expected forecast for Intel’s fiscal second quarter and a six p.c drop in shares.

Final 12 months, the Intel boss mentioned the “semiconductor scarcity is sort of important and the semiconductor business was rising about 5 p.c per 12 months earlier than Covid.

“Covid disrupted the availability chains, inflicting it to go destructive… Demand exploded to twenty p.c year-over-year and disrupted provide chains created a really giant hole… and that exploding demand has continued.”

The scarcity has affected the availability chains of all three house consoles, in addition to PC graphics playing cards.

Regardless of the scarcity, Xbox final week reported its largest March by way of {hardware} income for a decade.

In consequence, Xbox has gained market share towards PlayStation – partly attributable to provide shortages.

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