Intel CEO Pat Gelsinger said in an interview with CNBC’s TechCheck that a lack of tools to produce chips would prolong shortages, making it more difficult to meet strong demand. With increased wafer output and slightly lower demand in the industry, a lot of analysts predicted that the shortfall will be over soon.
Despite the fact that Intel is the only American firm that manufactures its own CPUs, it still relies on outsourcing. In 2023, Gelsinger famously decided to use TSMC to create some “leading CPU products.” Intel’s Foundry services, which produce semiconductors for other companies, are also growing.
Intel has estimated a weaker second fiscal quarter than investors had anticipated
The company’s recent profits exceeded forecasts, but the market was dampened by the news, as shares dipped in after-hours trade after the release.
ASML, the world’s leading manufacturer of lithography scanners, announced in April that it would only be able to fill 60% of orders for chipmaking tools this year. The company’s CEO warned that it will be unable to meet demand from businesses who use its services.
Intel is now working on a new manufacturing “mega site” in Ohio, but the first fab isn’t slated to open until 2025. The company is also planning to construct a facility in Germany and is expanding its Arizona operations.
AMD CEO Lisa Su stated in September that the chip scarcity would begin to resolve itself in late 2022, providing a more optimistic image of the market. AMD’s position on the subject hasn’t altered since then.
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