The shortage of semiconductors — that is affecting manufacturing worldwide for the past several months — is likely to stretch into 2023, says Intel Corporation's chief executive officer Pat Gelsinger.
The acute shortage of semiconductors chips — which started after the pandemic in 2020 — has triggered distress as companies fail to meet the rising demand for a wide range of electronic goods and components. A recent analysis by Goldman Sachs suggested that the global chip supply shortage impacts at least 169 industries.
"It could take one or two years to get back to a reasonable supply-and-demand balance in the semiconductor industry... We have a long way to go yet... It just takes a long time to build
Last month, Tesla chief Elon Musk said the ongoing microchip shortage was like the scarcity of toilet paper in the early days of the COVID-19 pandemic and accepted that it was a huge challenge for his electric car company.
In May this year, Patrick Armstrong, CIO of Plurimi Investment Managers, told CNBC that the chip shortage was likely to last 18 months. "It's not just autos. It’s phones. It’s the internet of everything. There are so many goods now that have many more chips than they ever did in the past," he said.
Carlos Tavares, CEO of Stellantis, has also said the crisis will stretch into 2022, "The semiconductor crisis, from everything I see and I'm not sure I can see everything, is going to drag into 2022 because I don't see enough signs that additional production from the Asian sourcing points is going to come to the West in the near future."
Meanwhile, Gartner analyst Alan Priestley told CNBC that the situation may improve for some sectors in the next six months, but that there may be a “knock-on effect” into 2022.
His statement came after several chief executives — including General Motors CEO Mary Barra, Ford CEO Jim Farley and Stellantis CEO Carlos Tavares, along with Alphabet CEO Sundar Pichai, Intel CEO Pat Gelsinger and representatives from Taiwan Semiconductor Manufacturing Company, Samsung, HP and other tech firms — held a meeting with White House officials on the issue.