Intel CEO Pat Gelsinger predicts the chip shortage will last until 2023

[midian182]

Forward-looking: There’s a split opinion among the tech industry’s biggest names as to when the global chip shortage will end. The more optimistic view is the second half of next year, while the opposing, and arguably more realistic, belief is that things won’t get better until 2023. Joining the latter group, sadly, is Intel CEO Pat Gelsinger.

Speaking ahead of Intel’s Q3 earnings, Gelsinger told CNBC: “We’re in the worst of it now [the semiconductor shortage], every quarter next year we’ll get incrementally better, but they’re not going to have supply-demand balance until 2023.”

Gelsinger joins the likes of auto industry analysts, semiconductor manufacturers, and Flex—the world’s third-biggest electronics contract manufacturer—in predicting the chip shortage will last at least 14 or 15 more months, if not longer.

It seems those creating the products that use the chips are more hopeful that the situation will improve sooner. Xbox boss Phil Spencer and AMD’s Lisa Su believe supply and demand will balance out next year, as does analyst firm IDC. Nvidia, meanwhile, is somewhere in the middle, predicting that graphics card supply issues will last “the vast majority” of 2022.

In addition to the depressing outlook, Intel shares fell 8% on the back of news that its Client Computing Group, which includes its chip-producing business, saw a 2% dip in revenue to $9.7 billion during the quarter ending October 2. The company said its PC sales had fallen primarily because of “notebook ecosystem constraints.”

It’s not just the lack of chips impacting laptop sales—shortages of other components are also causing problems. “We call it match sets, where we may have the CPU, but you don’t have the LCD, or you don’t have the Wi-Fi. Data centers are particularly struggling with some of the power chips and some of the networking or ethernet chips,” Gelsinger explains.

There was good news in the desktop PC category, which saw revenue gains of 20%, though it wasn’t enough to offset the decline in notebook sales.

A recent IDC report revealed that bottlenecked supply chains and ongoing logistic challenges resulted in the US PC market seeing its first quarter of annual shipment decline since the beginning of the pandemic.

H/T: The Verge

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https://www.techspot.com/news/91887-intel-ceo-pat-gelsinger-predicts-chip-shortage-last.html

 

[Nobina]

It will last as long as they want it to and let's not even talk about how prices at MSRP are high as duck but it doesn't matter because people are getting desperate.

 

[NicktheWVAHick]

Much like my car, I’m finished purchasing upgrades for my computer…probably for good. Given my age, deteriorating eyesight, hearing, etc etc, there’s no need to go from smooth gameplay at 4K to 8K or whatever comes next. Hell, not much out there that makes use of more than one of my 16 cores anyway. Only reason to buy something else at this point is if it breaks.

 

[MaestroIT]

Each month somebody will come and increase the shortage length, at this pace it will not end before 2030 :/

 

[Uncle Al]

This is one that the FTC and other Federal Investigators should put on their radar OR better yet, not let the makers charge more for. Let them suffer the penalty of low / slow sales and see how long it lasts!

 

[Tantor]

All of the major watchdog organizations have collapsed over the last few years. That includes the FCC, FDA, OSHA, SCOTUS, ACLU, Fed. The mainstream media no longer does true investigative journalism. They allow the most egregious violations without blinking an eye. The big transnational corporations are running wild.

 

[pcnthuziast]

A global reconfiguration of the class heirarchy is part of the great reset and pricing targeted demographics out of various markets is among the tools to expedite it.

 

[p51d007]

This is one that the FTC and other Federal Investigators should put on their radar OR better yet, not let the makers charge more for. Let them suffer the penalty of low / slow sales and see how long it lasts!

Oh, you know that won't happen. With the bribes & kickbacks members of congress/senate/FTC etc get, nothing will be done.
After all, how do you expect a member of congress/senate, to become a MILLIONAIRE, on a measly $200,000.00 salary per year, in one of the most expensive housing markets, while maintaing a residence back in their "home" state.

 

[Jack Deth]

Each month somebody will come and increase the shortage length, at this pace it will not end before 2030 :/

Just in time for the Great Reset.

You'll own nothing. And be happy.

 

[Jack Deth]

A global reconfiguration of the class heirarchy is part of the great reset and pricing targeted demographics out of various markets is among the tools to expedite it.

This

 

[Ludak021]

Chip shortage, yet, new golf 8 in basic trim has in it what golf 7 had in upper medium trim and more, and costs ~5000 euros less.

Keep believing the lies.

 

[fazy shah]

This is not a prediction it's pre-planned. Stop blaming corona and supply chain/scalpers/retailers lame excuses we all know this is intentional hoarding to make max profit and blame.