As told by the head-on Intel Corporation, the global semi-conductor chip shortage could be improved. However, they aren’t sure it can be resolved by year-end.
The current global shortage has not only hit the product manufacturers but also the chip-makers. As the global push towards shifting to electric vehicles and renewable energy resources. So does the need to be able to provide the materials required.
The chip shortage issue
The mere $1 chip is creating trouble for every industry. As technology advances from basic things to autonomous devices like self-driving cars. Leading to the demand in every industry from smartphones to electric vehicles.
Interestingly, the chip shortage was there all along. Possibly, no one considered that they will have to shut down factories because of chip shortage. In 2019, there was a chip shortage issue for Intel. Even then, they planned on different initiatives. However, the situation leads to this as more technology is coming along. Additionally, the chip shortage in 2019 was for laptop chipmaking production.
Despite all the chaos, Intel is continuously working in the manufacturing sector.
New manufacturing facilities
Intel is focusing on expanding its chip manufacturing facilities by spending $20 Billion. This money is to go to the two factories in Arizona. Furthermore, the demand for chips in China has also been their primary concern. With their new manufacturing facilities, they hope to balance power.
Intel is one of the two advanced chip manufacturers in mass production. With other being Samsung electronics from South Korea.
As told by Gelsinger from Intel, “We are absolutely committed to leading process technology capabilities at scale for the industry, and for our customers.”
Furthermore, chip shortage is no more a manufacturing issue. Italy from Europe has also recognized the importance of chip businesses. leading to halting in a Chinese company acquiring an Italian company.
Intel is focused on the American market is important for the US government. In a talk with Reuters, U.S. Secretary of Commerce Gina Raimondo says,
“Intel’s investment will help to preserve U.S. technology innovation and leadership. Strengthen U.S. economic and national security. And protect and grow thousands of high-tech, high-wage American jobs.”
“Semiconductors are the 5th-largest US export sector, but there is room to grow the industry. To do so, we need a partner, and we hope the federal government will become that partner,” says @intel CEO @PGelsinger. More in @thehill. https://t.co/AYwQGcx3gO
— Intel Policy (@IntelPolicy) April 12, 2021
Not to forget, Joe Biden’s recent push towards shifting to a carbon-free country.
Companies aligned with chip making
Every smart technology is involved with a chip manufacturer. Samsung had to postpone its Samsung Galaxy Note series this year. Furthermore, Nio and Tesla had to shut down their factories because of chip shortage.
Intel itself is on a verge of not knowing if the chip demand will be fully met. However, Nividia, a competitor for Intel, says the demand can be met by 2023. For now, the demand in need will be more than the supply manufactured.