Intel’s CEO predicts the ongoing chip shortage will last until 2024

During the early stages of the ongoing chip shortage, many claimed things would ease up in 2022. However, semiconductor companies are still struggling to increase capacity, leading Intel's CEO, Pat Gelsinger, to expect the shortage to last into 2024.

According to CNBC, Pat Gelsinger believes the chip shortage may last longer than initially expected due to the lack of specific manufacturing tools, preventing semiconductor companies from increasing capacity. Due to this issue, Intel's CEO thinks the chip shortage will drift into 2024, pushing his forecast by a whole year.

Considering GPU prices have been decreasing for months, it's clear that things are improving, but the graphics card market makes up just a fraction of the overall tech industry. Other consumer electronics markets, automotive companies, and many other industries which were also affected by the chip shortages and are still recovering.

However, compared to other companies, Intel is actually in a much better place thanks to the IDM 2.0 strategy. While most other chip manufacturers are limited to a supplier such as TSMC, Intel uses internal capacity while also allocating production to 3rd party foundries. That position will be further strengthened as Intel invests in its fabs worldwide, with plans to build new facilities over the next five years.

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KitGuru says: Up to now, Intel was relatively unaffected by the chip shortage. Even at the worst times, Intel processors were available at most retailers, showing that its IDM 2.0 strategy is working.

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