Shortages impacting manufacturing equipment could extend these dark days.
hit equipment manufacturing. Without the chip capacity to build certain manufacturing tools, factories will struggle to ramp up production, regardless of whether they’ve acquired the chips needed for their products.
“That’s part of the reason that we believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged,” Gelsinger said. The 2024 prediction is further away than what most tech executives have predicted since the chip shortage began terrorizing the auto and tech industries two years ago. In fact, Gelsinger, in 2021, said it would take “a couple of years” for the shortage to abate, and pointed to 2023 for when we’ll see the “supply chain tightness release a little bit.”
Turning to Intel’s rival, AMD CEO Lisa Su said last September that the shortage would become less severe in the second half of 2022, but didn’t predict when it might end altogether. Nvidia’s Chief Financial Officer Colette Kress projected supply improvements in the second half of 2022.
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