Experts and tech industry veterans have long expected the global semiconductor shortage to last for years, but Intel chief Pat Gelsinger now says it could go on longer than previously expected.
The CEO told CNBC’s TechCheck that he expects the issue to drag on until 2024, because the shortage has now hit equipment manufacturing. That could make it difficult for companies to obtain key manufacturing tools and hit production goals that might be bigger than before due to growing demand.
Gelsinger told the publication:
Lockdowns tied to the COVID-19 pandemic had severely impacted the chip industry at a time when demand was ramping up. It forced not just tech companies, but also automakers like GM and Ford, to limit and even to suspend production.
Apple’s MacBook and iPad shipments faced delays due to component shortages, and smartphone shipments in general fell in late 2021. This negative impact on the tech and auto industries translated to devastating economic consequences — according to CBS News, the global chip shortage cost the United States $240 billion in 2021 based on expert estimates.