In Biden’s America, everything is in shortage, from gas, food, and now semiconductor shortage. Americans continue to pay for Biden’s inept leadership, bringing more problems than solutions.
And now, Intel CEO Pat Gelsinger has some bad news for all of us. The CEO warned us that the semiconductor shortage will last until 2024.
Gelsinger revealed to CNBC that certain manufacturing tools remain unavailable, which threatens to constrain chipmaking capacity.
Here’s what Gelsinger explained while discussing the diversification of chipmaking away from Asia:
“That’s part of the reason that we believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged.”
“We’ve really invested in those equipment relationships, but that will be tempering the build-out of capacity for us and everybody else, but we believe we’re positioned better than the rest of the industry.”
Lockdowns tied to the COVID-19 pandemic had severely impacted the chip industry at a time when demand was ramping up. It forced not just tech companies, but also automakers like GM and Ford, to limit and even suspend production.
Apple’s MacBook and iPad shipments faced delays due to component shortages, and smartphone shipments, in general, fell in late 2021. This negative impact on the tech and auto industries translated to devastating economic consequences, the global chip shortage cost the United States $240 billion in 2021 based on expert estimates.
Daily Wire reported:
Tesla, for instance, is not producing any new models in 2022. “The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain,” Tesla said in a shareholder presentation announcing the company’s fourth-quarter 2021 earnings. “Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022.”
In response, many companies are racing to erect new manufacturing facilities, even as local officials encourage production in their states.
For example, Samsung is building a $17 billion semiconductor factory in Taylor, Texas — marking the largest foreign direct investment in the state’s history.
“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” Governor Greg Abbott (R-TX) said last November in response. “Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans and their families and will play a major role in our state’s continued exceptionalism in the semiconductor industry.”
Back in January, Republican Governor Ron DeSantis announced that he would invest the state’s funds to increase microchip and semiconductor manufacturing in Florida so that the Chinese Communist Party could not “hold our supply chain hostage.”
Here’s what DeSantis said at a press conference:
“We have to start standing up as Floridians and Americans. We cannot be captive. Key sectors of our economy should not be captive to some of these foreign nations, particularly outfits like the Communist Party of China.”
“And then even when you have allies like Taiwan, how that could impact, if there was a disruption there, could throw a lot of this through the loop even more than we’ve seen over the past year and a half. So the more we have this capacity within our own country, but particularly within our own state here in Florida, the more opportunities there’s going to be for people and the more secure both our economic supply chains will be and our national security.”
Intel is one of the companies investing heavily in new production lines, by the way, building new fabs in Ohio, Arizona, and Germany, though the current timeline suggests none of those new fabs will go online until the chip shortage is over.
The first new fabs in Chandler, Arizona, aren’t scheduled to open until 2024.
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