If you've been hoping that the PC chip shortage will end soon, you're in for a rude surprise. According to Gelsinger, things might not get back to normal until well into the future.
The shortage has been inescapable in the news cycle, but the recent outlook has generally been more positive. There is light at the end of the tunnel because of the increasing supplies and falling prices of graphics cards. Gelsinger thinks something has changed the picture.
Gelsinger explained in an interview with CNBC that shortages are affecting the supply of key manufacturing tools, instead of just causing a lack of materials used in the chips. Making the chips becomes more difficult without those tools.
It is part of the reason that we believe the overall shortage will drift into 2024, from our earlier estimates, just because the shortages have hit equipment and some of the factory ramps will be more challenged.
The new date is later than many had predicted. The CEO of Intel believed that the supply-demand balance wouldn't improve until at least 2023. The opinion seems to have changed.
Intel has opened factories in the US and Europe to make up for the disrupted supply chains caused by the Pandemic.
It's probably a good idea to temper your expectations of when chip prices and availability might get better for the long run, with the shortage potentially now expected to continue for another 18 months. The news from Intel shows we shouldn't get carried away.
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