Intel CEO says global chip shortage will not end before 2023
Intel CEO Pat Gelsinger told CNBC late on Thursday that he didn't expect the semiconductor shortage to end until 2023.
"We're in the worst of it now, every quarter, next year we'll get incrementally better, but they're not going to have supply-demand balance until 2023," Gelsinger was quoted as saying.
AdvertisementThe company delivered its Q3 results with revenue up 5 per cent (year-over-year) driven by strong demand in its DCG and IoTG businesses, despite the highly constrained industry-wide supply environment.
"Q3 revenue was $18.1 billion slightly below our guide due to shipping and supply constraints that impacted our businesses," George S. Davis, Chief Financial Officer, said in a statement. He also announced plans to retire from Intel in May 2022.
In the third quarter, the company generated $9.9 billion in cash from operations and paid dividends of $1.4 billion.
According to the company, the demand remains strong in its PC business with particular strength in commercial, desktop and higher-end consumer notebooks.
In an earnings call, Gelsinger said that the digitisation of everything accelerated by the four superpowers of AI, pervasive connectivity, cloud to edge infrastructure, and ubiquitous compute are driving the sustained need for more semiconductors.
"The market is expected to double to $1 trillion by 2030. In that timeframe, the market for leading-edge nodes will rise to be over 50 per cent of the total, while the market for leading-edge foundry services will grow at twice the rate of the semi-industry overall," he envisioned.
AdvertisementPC demand remains very strong, and "We believe the 2021 TAM (total addressable market) will grow double digits even as ecosystem shortages constrain our customer's ability to ship finished systems," Gelsinger added.
"Customers continue to choose Intel for their datacenter needs and our third gen scalable Xeon processor Ice Lake has shipped over 1 million units since launching in April, and we expect to ship over 1 million units again in Q4 alone," he informed.
AdvertisementApple will likely have to cut its iPhone 13 production goals for 2021 due to the global chip shortage
Global chip shortages are expected to cost automakers $210 billion in 2021 - almost double previous estimates, a consulting firm says
Popular on BI
- With the metaverse, NFTs and DeFi on the rise, Ethereum miners rake in $2 billion in revenue — a jump of 11% over October
- Gen Bipin Rawat, his wife, and 11 others killed in chopper crash near Coonoor in Tamil Nadu
- RBI keeps lending rates intact, remains accommodative
- India remains to be ranked as the fourth most powerful country as per Asia Power Index 2021
- Although Shriram Properties has solid future prospects, Omicron may mess things in the near term