Intel
How many years will the continuing shortage of chips affect technology companies around the world? This week, several executives of technology presented their own bleak estimates as part of their usual public financial disclosures, with the worst one after a few years.
The nasty estimate comes from Intel CEO Pat Gelsinger, who presented the vague time frame to The Washington Post in an interview on Tuesday. He explained that it was an estimate of how long it would take the business to ‘build capacity’ to address the supply shortages possibly. The conversation came when Intel offered to act for two supply chains that were particularly pinched by the silicon drought: medical supplies and computer systems in the car.
In previous statements, Gelsinger pointed to Intel’s current $ 20 billion plan to build several factories in Arizona, and this week’s interview praised President Joe Biden’s proposed $ 50 billion infrastructure plan for disk production – although Gelsinger indicated has that Biden should be ready to spend more than that.
Born in Arizona …
CC Wei, CEO of TSMC, on Thursday presented a similar estimate to investors, saying that the Taiwan-based company hopes to ‘offer more capacity’ in 2023 to meet the demand for retail and manufacturing. ‘TSMC happens to be continuing its own manufacturing plant in Arizona, which Bloomberg says could’ cost up to $ 12 billion ‘, despite the company explaining that it intends to prioritize research, development and production in its home country.
Graphics card and SoC producer Nvidia joined the grim estimation club this week, although Nvidia has a more optimistic belief that it will appear with ‘sufficient supply to support sequential growth’ [fiscal] V1 [2022], “according to CFO Colette Kress. Until then,” we expect demand to continue to exceed supply for much of this year, “she said.
But while tech companies are looking for natural disasters, exponential consumer demand and the construction of brand new facilities, some questions remain unanswered. How will so much scaling up of new factories go? Will they meet their construction deadlines, and will they be almost as effective as promised or hoped once their lines open? Car manufacturers as well as gamers will be watching with great interest.