Intel's CEO, Pat Gelsinger, recently shared his views about the recent chip shortage crisis and claimed that it is not going to end anytime soon. In fact, he believes that the worst is yet to come from this chip crisis in the world!
He said that the shortage would actually get even worse as we enter the 3rd and 4th quarters of this year. And for the future, he believes that it may take around 1-2 years for the supply chain to return to normal.
The disruption in the supply chain of chips started during the pandemic and escalated due to high demand & poor US-China relationships. Overall, all of these factors resulted in a shortage of electronic chips that power the majority of our devices, from cars to computers to even refrigerators!
To solve this crisis, Intel's CEO stressed that the relationship with China must be normalized as that's where the bulk of the chips comes from! He also said that the need of the hour is to build new factories, but that will take some time.
Intel is also planning to launch new semi-conductor factories in Europe and USA by the end of this year. However, once again, it will take 1-2 years before these factories are developed and functional.
Right now, everyone knows that the relationship between the US and China is at all times low. And as a result of this poor relationship, the whole semi-conductor industry has been caught in the conflict.
Around 25% of Intel's revenue is currently tied up in China, and according to Mr. Gelsinger, it is China's insatiable thirst for improvement and technology that has helped in pushing their economy high.
Due to its stronghold in China and USA, Intel's CEO also believes that it can play an influential positive role in improving US-China relations.