Intel CEO Pat Gelsinger has recently stated that the semi-conductor and chip shortage that is affecting CPU and GPU chipset manufacturing will actually last into 2024, instead of his previous comment stating 2023.
Gelsinger spoke to CNBC’s DataCheck where he amended his previous prediction stating that the chip shortage would not alleviate until 2023, shifting the timeline to 2024.
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In the interview, Gelsinger stated the shortages are likely to extend into 2024 because manufacturing tools and resources are not available as previously estimated. At the current time chips are still not being made in the volumes that were predicted they would at this point, but this is due to equipment shortages needed for manufacturing.
“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’s previous comment and estimate stated that “we’re in the worst of it now, every quarter next year we’ll get incrementally better, but they’re not going to have supply-demand balance until 2023”, in October of 2021.
AMD CEO Lisa Su was far more optimistic in her model stating that we should see chip shortage alleviating by the second half of 2022. AMD’s shortage has severely impacted the production of home consoles such as PS5 and Xbox Series X/S as well as their lineup of PC CPU’s and GPU’s.
The shortages could not have come at a worse time for Sony and Xbox since each of their respective current-gen consoles released during the Covid-19 pandemic when interest for home gaming consoles was incredibly high. Demand shot up partly because of the isolation and social distancing protocols that were implemented but also because it was the new generation of consoles that always sees a huge drive in demand. Microsoft’s Phil Spencer also stated that there are multiple problems with console manufacturing at the present time.
“I think it’s probably too isolated to talk about it as just a chip problem,” he said. “When I think about, what does it mean to get the parts necessary to build a console today, and then get it to the markets where the demand is, there are multiple kind of pinch points in that process.
And I think regretfully it’s going to be with us for months and months, definitely through the end of this calendar year and into the next calendar year.”
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Source: CNBC
