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Intel warns chip shortage could last until 2024, but demand may not last

Update time : 2022-05-31 10:40:37

Intel CEO Pat Gelsinger believes that products ranging from automobiles to advanced weapons are currently affected by chip shortages, a problem that will continue through 2024.

As more people work and play from home during the pandemic, demand for chips used in laptops, gaming devices and data centers has soared. Now, chip equipment makers such as ASML and Applied Materials can't keep up with the demands of chipmakers because they can't buy enough semiconductors.
"The biggest issue we've had over the past six to nine months has been equipment coming into the fab," Gelsinger said. "The lead times for these devices have been extended considerably."
Earlier this year, Intel announced projects for new factories in the U.S. and Europe. Gelsinger did not comment on how a shortage of chip-making equipment might affect Intel's expansion plans.
Chipmakers such as Intel, TSMC and Samsung are counting on ASML to boost production capacity, and the world's only supplier of EUV equipment, hoped to break Moore's Law, said in early 2022 that it could not meet demand. Even so, ASML expects its sales to rise about 20% this year.
But while the chip shortage is expected to continue for at least another year, Intel's president has warned that a global recession is likely in the next six months. A downturn could slow demand for chips.

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