Massive chip shortage to continue for up to 2 years, says Intel CEO
Intel CEO Pat Gelsinger has said that the massive chip
shortage will continue for at least two more years before the industry is able
to completely catch up with the demand.
The strong demand environment continues to stress the supply chain
across the world.
"While I expect the shortages to bottom out in the second
half, it will take another one to two years before the industry is able to
completely catch up with demand," Gelsinger said during the Q2 earnings
call on Thursday .
"IDM 2.0, which combines our internal manufacturing capacity
with the use of third party foundries fast-positions us to weather these
challenges and work with our ecosystem partners to build a more resilient
supply chain," he informed.
Intel laid
out its IDM 2.0 strategy in March, moving the company forward toward its goal
of delivering leadership products in every category in which it competes.
Intel reported
a strong Q2 and raised full-year revenue guidance by $1 billion despite a
highly constrained supply environment.
In the second quarter, the company generated $8.7 billion in cash
from operations and paid dividends of $1.4 billion.
"Q2 revenue was $18.5 billion exceeding our guidance by $700
million. This upside was led by continued strength in our PC business and
earlier-than-expected recovery in both our IoTG business and the enterprise
portion of the data center segment," said George Davis, Chief Financial
Officer.
Gelsinger said that the ecosystem is back to shipping over one
million PC units a day despite grappling with component shortages.
"I expect PC TAM growth will continue in 2022 and beyond,
driven by three factors -- PC density or PCs per household is increasing as
COVID has irreversible changed the way we work, learn connect and care for each
other," he added.
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