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Intel CEO Says Chip Shortage Could Stretch Into 2023

Intel CEO, Pat Gelsinger, says the semiconductor shortage could stretch into 2023, as chip supply disruptions are hitting companies and consumers globally. The shortage has caused rising prices for some consumer gadgets and harmed the auto industry immensely with production delays. Volkswagen warned the global shortage could worsen in the next 6 months. Gelsinger said it could take up to two years to balance the supply and demand of the semiconductor industry.

The shortages in supply should start easing later this year, reflecting comments made by Taiwan Semiconductor Manufacturing Co. last week. TSMC is the largest contract chip maker and said that it is ramping up its production of auto chips and car makers should start to see an ease in the next few months. Gelsinger has committed to establishing a contract chip-making operation by expanding its factory and bringing in new talent. Intel is also in talks to buy GlobalFoundries for an estimated $30 billion. Gelsinger introduced his turnaround plan in March and capacity growth in the US and abroad is in planning.

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