Six months after predicting the worldwide chip shortage would last until at least 2023, Intel CEO Pat is now suggesting it might be 2024 before we’re fully out of the woods. We believe the overall semiconductor shortages have now hit equipment and some of those factory ramps will be more challenged.
But while that sounds a little doom-y and gloom-y you should know that the chip shortage is an involved evolving situation that doesn’t affect every kind of chip at every time. Some industries and some kinds of parts have been worse hit than others as things go on. In fact Intel’s own chips are doing fairly well.
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For the first time in years Intel fabs and our substrate supply are close to meeting our customers demand. When Pal says that the shortage will stretch into 2024 he’s partly talking about the industry capacity to meet command for new products being built on latest lines not just existing ones.
We expect the industry will continue to see challenges until at least 2024 in areas like foundry ability and tool capacity as an IDM. Put another way CPUs, GPUs and game consoles were some of the highest profile items hit by shortages but it seems like supply and demand are already beginning to equalize there.
But networking chip vendors are still in the middle of a significant chip shortage. Intel is one of the agencies investing heavily in latest production lines by the way building latest fabs in Ohio, Arizona and Germany though the recent timeline suggests none of those latest fabs will go online until the chip deficiency is over.