Intel CEO Gelsinger sees chip shortage lasting to 2024
Intel, which has promised to regain “process performance leadership” by the end of 2024, has created a road map that includes taking delivery of ASML’s next-generation extreme ultraviolet lithography (EUV) machine. The $150 million machine uses highly polished mirrors to help focus ultraviolet light allowing it to etch circuitry patterns onto a wafer.
Before speaking on CNBC, Gelsinger previously said that a supply-demand balance in the chip industry would take place in 2023. Intel did report first-quarter revenue and earnings last week that topped expectations on Wall Street although its estimates for the second quarter came in below analyst’s forecasts. Over the last week, Intel’s shares declined 8.6% from $93 to $85.
Intel to enter the business of building chips for third party chip designers
With two new fabs being built in Arizona, Intel is taking the business model perfected by TSMC and is bringing it to the U.S. But that doesn’t mean that TSMC won’t be a competitor. The Taiwan-based company is building its own plant in Arizona that will turn out 5nm chips by 2024.
Tech firms are expected to embrace the possibility of having Intel produce chips based on their designs without fear that a geopolitical event will force TSMC to shut its factories in Taiwan and create a massive bottleneck that would make the current chip shortage feel like a walk in the park.
In 2020, the U.S. Commerce Department put in place a rule that blocks foundries that use American technology to build advanced chips from shipping such chips to Huawei even if the chips were designed by the company itself.
