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Intel CEO: Chip Shortage Will Get Worse

It could be up to two years before supplies return to normal.

The chief executive of one of the world’s leading semiconductor makers predicts that a global shortage of chips is about to get even worse.

Intel CEO Pat Gelsinger tells the BBC that he expects the semiconductor shortfall to increase in the second half of this year. And he warned that it could be “a year or two” before the world’s supply of chips is able to meet demand.

The shortage began in the wake of the COVID-19 pandemic. Global demand for electronics increased, which left other sectors — notably automotive — struggling to find enough chips. Semiconductors also face months-long lead times, which makes catching up difficult.

Gelsinger now says that poor relations between the U.S. and China are exacerbating the problem.

Governments and chip makers — including Intel — are planning new semiconductor factories to help resolve the issue. But Gelsinger cautioned that those facilities won’t be able to help while they’re still under construction.

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