Pet Gelsinger, CEO of Intel, the U.S. semiconductor company, has predicted that the global semiconductor shortage will continue until 2023.
In an interview with the Wall Street Journal (WSJ) on the 22nd (local time), CEO Gelsinger said, “There’s still a long way to go.” Gelsinger predicted it would take at least one to two years for semiconductor production to balance supply and demand.
Although the global economy is recovering quickly from the recession caused by the new Coronavirus (COVID-19), several manufacturing industries are experiencing severe shortages of semiconductors due to faulty demand forecasts. The automotive industry was directly affected, as well as certain household appliances, resulting in higher consumer prices.
Due to the nature of semiconductors as a large-scale device industry, the industry has consistently predicted that the supply shortage will not be resolved in a short period of time.
The semiconductor shortage is expected to worsen in the second half of the year, and other automakers expect the same situation to persist into next year.
Gelsinger did observe that the end of the year could alleviate some supply shortages. A few months ago, TSMC, the world’s largest foundry (contract manufacturing), predicted that the automotive semiconductor shortage would ease.
Intel and TSMC are expected to start operating their new semiconductor plants within two years, according to the WSJ.