The global chip crisis that has swept the world has made itself felt in the past couple of years. Particularly, the problems related to chip production and supply process, which started with the Covid-19 epidemic, have put all technology production companies into great trouble. While this challenging process is being looked forward to all over the world, an unpromising statement came from the Intel CEO.
Global chip crisis may continue until 2023
Intel, which is one of the companies most affected by the great trouble, shared the roadmaps they will follow in their fight against the crisis in the past months. Intel CEO Pat Gelsinger made pessimistic statements about the global chip crisis in an interview with Nikkei Asia. According to Pat Gelsinger, the chip supply crisis will not end before 2023.
Intel had made an investment of 7.1 billion in Malaysia to expand its production. However, these investments are not expected to take effect immediately. Gelsinger said it could take at least three years for additional production capacity to yield results. Intel CEO said:
The chip and semiconductor industry was growing about 5 percent a year before COVID. COVID disrupted supply chains and caused it to go negative. Demand has increased 20 percent year over year and disrupted supply chains have created a huge gap. Afterwards, this booming demand continued to increase. Although our investments continue, it takes some time to build up this capacity to respond to the increase in demand.
The root cause of the global chip crisis!
According to many officials, the initial reason for the chip crisis is the conditions created by the pandemic. Especially the quarantine process created by Covid-19 caused many factories to take a break from their work. There was a pause in raw material supplies and chip production. Thus, the delivery of the orders received was delayed for months and the demand was concentrated.
Although the CEO of Intel, Pat Gelsinger, said that the effect will last for 2 more years, the Omicron variant continues to spread rapidly around the world. Managers worried that a new quarantine process will take effect all over the world. He underlines that there may be a further date for this crisis.
What do you think about the global chip crisis? Do you think the crisis will be over soon? Please share your views with us in the comments section.
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