How much has the semiconductor shortage cost?
In its first quarter results the company said Covid-19 lockdowns in Shanghai and Russia’s war in Ukraine were “further increasing supply chain risk and contributing to inflationary pressures”, exacerbating the shortage. Pat Gelsinger, CEO of Intel, said: “In the supply chain, lockdowns in Shanghai and the war in Ukraine have demonstrated more than ever that the world needs more resilient and more geographically balanced semiconductor manufacturing. “The chip shortage cost the US economy $240bn last year, and we expect the industry will continue to see challenges until at least 2024 in areas like foundry capacity and tool availability.” Intel saw revenues fall by 7% in the first quarter of 2022 year-on-year, from $19.7bn to $18.4bn. Net income rose by 141%, from $3.4bn to $8.1bn, which included proceeds of $4.9bn from the sale of McAfee. Gelsinger said the company was looking to create a “balanced semiconductor supply chain” after it announced it was investing $95bn in opening and upgrading semiconductor plants in Europe to reduce global dependency on Asia.
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