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Chip Shortage Might Last Until 2023 — Intel CEO

The ongoing chip shortage might last all the way until 2023. That is the expectation of Intel CEO Pat Gelsinger. 

His statement comes as laptop sales have slowed down, which is partly caused by chip shortage. Component shortages have also been a factor in the dip in laptop sales for Intel. The growth in desktop PCs has not been enough to compensate for the dip. 

The laptop industry is just one of the many industries around the world that have been affected by the chip shortage. Production and sales of vehicles and gaming consoles have also taken a hit due to the shortage. 

Chip Shortage Might Last Until 2023

(Photo : Milind Shelte/The India Today Group via Getty Images)

MUMBAI, MAHARASHTRA MAY 21: CEO of VMware, Patrick P. Gelsinger clicked during a photo shoot in Mumbai.

The ongoing chip shortage might last until 2023, according to Intel CEO Pat Gelsinger. 

According to a report by The Verge, Gelsinger said in a CNBC interview that “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.”

For AMD and NVIDIA, the expectation is that the situation regarding the chip shortage will get better by next year, which is better than what Intel is predicting. 

Related Article: Chip Shortage is Expected to Cause Major Price Hikes on Gadgets and Other Tech Products

Intel Laptop Sales Dip

The Verge notes in its report that Intel experienced a 5% drop in the sale of its notebooks. It is, however, not to be blamed solely on the ongoing chip shortage. 

The company has attributed the slow down to what is being referred to as “notebook ecosystem constraints.” What this simply means is there are not enough laptop parts or components. 

According to the Intel CEO, “We call it match sets, where we may have the CPU, but you don’t have the LCD, or you don’t have the Wi-Fi.”

Gelsinger notes that data centers are encountering difficulties when it comes to power chips, as well as ethernet chips. 

The Verge points out that there has been a 20% growth in revenue gains of desktop PCs. The growth, however, does not compensate for the dip in laptop sales. The growth in desktop sales has also already slowed down as more people return to offices and schools. 

The Ongoing Chip Shortage

The ongoing chip shortage has affected various industries around the world and slowed down the production of different electronic products around the world. Among those who took a hit in their production and sales are vehicles and gaming consoles. 

The chip shortage has caused some car companies to shut down some of their plants temporarily. An example of this is General Motors (GM), which temporarily shut down its plants in North America and Mexico last month. 

The PlayStation 5 has also been hit by the chip shortage. It was reported early this year that Sony has been struggling with supplying the different components of the gaming console. 

Also Read: Chip Shortage is Not the Only Reason why Apple, Facebook, Google, Tesla, and MORE are Designing their Semiconductors

This article is owned by Tech Times

Written by Isabella James

ⓒ 2021 All rights reserved. Do not reproduce without permission.

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