It’s no news that the world is facing a semiconductor chip shortage and we’ve had several warnings from executives of tech giants saying that the shortage will continue till 2022 or beyond. Now, in his talk with Nikkei Asia, Intel CEO Pat Gelsinger has added to the woes with a warning that the shortage will continue till 2023.
“The overall semiconductor shortage is quite significant and the semiconductor industry was growing about 5% per year before COVID,” he said. But since the onset of the virus, supply chains took a hit and companies were unable to keep up with the increasing demand. “COVID disrupted the supply chains, causing it to go negative. Demand exploded to 20% year-over-year and disrupted supply chains created a very large gap … and that exploding demand has persisted,” he added.
Intel expanding in Malaysia to tackle chip shortage
To tackle chip shortage, Intel is expanding into Malaysia with a new facility to “expand its back-end manufacturing capabilities and advanced packaging lines” over the next 10 years. Gelsinger also expects to create over 4,000 job opportunities with this move. The Malaysian Investment Development Authority has already given a green signal for the facility. It’ll be in Bayan Lepas, near the international airport in the state of Penang.
Back in August, the company CFO George Davis stated that the chip shortage will hamper the production of gaming CPUs as well and that the industry will take another year or two to catch up with the demand.