The global semiconductor shortage roiling a wide range of industries likely won\u2019t be resolved for a few more years, according to Intel Corp.\u2019s new Chief Executive Officer Pat Gelsinger.<\/p>\n
The company is reworking some of its factories to increase production and address the chip shortage in the auto industry, he said in an interview with CBS News, based on\u00a0snippets<\/a><\/strong>\u00a0from its \u201c60 Minutes\u201d program.<\/p>\n It may take at least several months for the strain on supply to even begin easing, he added.<\/p>\n \u201cWe have a couple of years until we catch\u00a0up to<\/span>\u00a0this surging demand across every aspect of the business,\u201d Gelsinger said.<\/p>\n Demand for semiconductors was boosted in 2020 as consumers scooped up home gadgets during the pandemic. But meeting that increase has been hard, thanks to\u00a0shuttered plants<\/a><\/strong>, among other factors.<\/p>\n Companies<\/strong> worldwide<\/strong><\/a>\u00a0say they expect supply-chain constraints due to logistics backlogs and the chip shortage to continue for much of 2021.<\/p>\n The global crunch has catapulted semiconductor firms into the limelight and to the top of political agendas.<\/p>\n The Biden administration\u00a0last month<\/a><\/strong>\u00a0told companies vying with each other for semiconductors that he has bipartisan support for government funding to address the shortages.<\/p>\n Gelsinger said U.S. dominance in the industry had dwindled so much that only 12% of the world\u2019s semiconductor manufacturing is done in the country today, from 37% a quarter of a century ago.<\/p>\n Intel is the only manufacturer of high-end, cutting edge chips, he told CBS.<\/p>\n \u201cAnd anybody who looks at supply chain says, \u2018That\u2019s a problem,\u2019\u201d he said. \u201cThis is a big, critical industry and we want more of it on American soil: the jobs that we want in America, the control of our long-term technology future.\u201d<\/p>\n He added that his company won\u2019t be \u201canywhere near as focused\u201d on its share repurchase program as it\u2019s been\u00a0up to<\/span>\u00a0now.<\/p>\n The supply constraints are hitting a wide array of industries, with tech firms and automakers alike flagging production cuts and lost revenue from the fallout.<\/p>\n It has\u00a0forced<\/a><\/strong>\u00a0the entire auto industry to cut output, with Ford announcing the shortage will likely reduce production by 1.1 million vehicles this year.<\/p>\n Jaguar Land Rover Automotive Plc<\/a>,\u00a0Volvo Group<\/a><\/strong>\u00a0and\u00a0Mitsubishi Motors Corp<\/strong>.<\/a>\u00a0recently joined the growing list of manufacturers idling factories.<\/p>\n Apple Inc.\u00a0warned<\/a><\/strong>\u00a0supply constraints are crimping sales of iPads and Macs.<\/p>\n Meanwhile, Mark Liu, chairman of Taiwan Semiconductor Manufacturing Co., told CBS his company, having heard about shortages at the end of last year, tried to \u201csqueeze\u201d out as many chips as possible for car companies.<\/p>\n \u201cToday, we think we are two months ahead, that we can catch up (to) the minimum requirement of our customers — by the end of June,\u201d he said.<\/p>\n The supply shortage may only be alleviated by the end of the year or early 2022, CBS said.<\/p>\n \u201cThere\u2019s a time lag,\u201d Liu said. \u201cIn car chips particularly, the supply chain is long and complex.\u201d<\/p>\n Liu also sought to ease concerns that U.S. companies are relying on Asian suppliers, which account for 75% of manufacturing, according to CBS.<\/p>\n \u201cThis is not about Asia or not Asia, because a shortage will happen no matter where the production is located,\u201d he said. \u201cBecause it\u2019s due to the Covid.\u201d<\/p>\n The global semiconductor shortage roiling a wide range of industries likely won\u2019t be resolved for a few more years, according to Intel Corp.\u2019s new Chief Executive Officer Pat Gelsinger.<\/p>\n","protected":false},"author":341034,"featured_media":395587,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[15],"tags":[131,69651,69653],"class_list":["post-395585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hardware","tag-intel","tag-intel-ceo-pat-gelsinger","tag-semiconductor-shortage"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/395585"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=395585"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/395585\/revisions"}],"predecessor-version":[{"id":395591,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/395585\/revisions\/395591"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/395587"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=395585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=395585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=395585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Now read: Chip shortage hits chip gear manufacturers<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"