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The CEO of Intel believes that the semiconductor shortages will persist until 2024.
The Corona crisis has also turned into a semiconductor crisis, which PC gamers witnessed in the shape of graphics cards that were either unavailable for an extended period of time or sold for far more than the suggested retail price.
Those looking for a PlayStation 5 or Xbox Series X are also aware of the issue: the gaming consoles have been tough to locate in retailers since their release at the end of 2020. In addition, the auto industry is complaining about missing chips and the resulting manufacturing issues. Pat Gelsinger, Intel's managing director, is now bringing terrible news. According to him, the semiconductor problem will have an effect by 2024.
Previously, the CEO anticipated that things would return to normal in late 2022 or early 2023. However, he now predicts a lengthier crisis. This is also owing to a shortage of equipment for rapidly expanding manufacturing capabilities. However, if you do not increase your plants, you will be unable to fulfill the demand. Previously, it was not anticipated that production equipment would become limited. Semiconductors are now present in an increasing number of items, worsening the crisis: consumers have long moved beyond computers and increasingly require microchips for other smart gadgets. This includes anything from a washing machine and a temperature sensor to automobiles, game consoles, cellphones, and traditional PCs and laptops.
Intel intends to prepare for the coming years by dramatically expanding its facilities, including one in Magdeburg, Germany. Unfortunately, the new locations will not begin production for some years.
schmidtbag
Senior Member
Posts: 7431
Joined: 2012-11-10
Senior Member
Posts: 7431
Joined: 2012-11-10
#6014486 Posted on: 05/04/2022 02:57 PM
Well considering Intel is mooching off TSMC, they are in full control over whether there will still be a shortage. Intel can just keep making contracts to limit what the competition can do, regardless of whether they even sell all that product.
Perhaps cell phone manufacturers could skip a year of silly minor updates on there phones, to help with chip supplies.
................. Oh what, that will not happen. Got to have the latest and greatest.
While I agree with your sentiment, phone SoC dies are small enough that you can fit a lot more product on a single wafer. A large chunk of them are also made on fabs other than Intel's or TSMC's, and those seem to be the only two delivering next-gen PC parts.
The good thing is, the fad of having the latest and greatest phone is starting to die. It's no longer the same statement of your social status or wealth like it once was (thank god...)
Well considering Intel is mooching off TSMC, they are in full control over whether there will still be a shortage. Intel can just keep making contracts to limit what the competition can do, regardless of whether they even sell all that product.
Perhaps cell phone manufacturers could skip a year of silly minor updates on there phones, to help with chip supplies.
................. Oh what, that will not happen. Got to have the latest and greatest.
While I agree with your sentiment, phone SoC dies are small enough that you can fit a lot more product on a single wafer. A large chunk of them are also made on fabs other than Intel's or TSMC's, and those seem to be the only two delivering next-gen PC parts.
The good thing is, the fad of having the latest and greatest phone is starting to die. It's no longer the same statement of your social status or wealth like it once was (thank god...)
Venix
Senior Member
Posts: 3105
Joined: 2016-08-01
Senior Member
Posts: 3105
Joined: 2016-08-01
#6014498 Posted on: 05/04/2022 03:28 PM
Well considering Intel is mooching off TSMC, they are in full control over whether there will still be a shortage. Intel can just keep making contracts to limit what the competition can do, regardless of whether they even sell all that product.
While I agree with your sentiment, phone SoC dies are small enough that you can fit a lot more product on a single wafer. A large chunk of them are also made on fabs other than Intel's or TSMC's, and those seem to be the only two delivering next-gen PC parts.
The good thing is, the fad of having the latest and greatest phone is starting to die. It's no longer the same statement of your social status or wealth like it once was (thank god...)
My phone will stay in until it melts away from the usage !
Well considering Intel is mooching off TSMC, they are in full control over whether there will still be a shortage. Intel can just keep making contracts to limit what the competition can do, regardless of whether they even sell all that product.
While I agree with your sentiment, phone SoC dies are small enough that you can fit a lot more product on a single wafer. A large chunk of them are also made on fabs other than Intel's or TSMC's, and those seem to be the only two delivering next-gen PC parts.
The good thing is, the fad of having the latest and greatest phone is starting to die. It's no longer the same statement of your social status or wealth like it once was (thank god...)
My phone will stay in until it melts away from the usage !
Danny_G13
Senior Member
Posts: 921
Joined: 2005-02-14
Senior Member
Posts: 921
Joined: 2005-02-14
#6014500 Posted on: 05/04/2022 03:34 PM
2020 and 2021 were great for chip manufacturers, as they could increase price with little pushback from consumers.
The pandemic, working and studding from home, were great excuses to raise prices and increase profit margins.
So these companies are now struggling to find reasons to keep these inflated prices and absurd profit margins.
It's not just chip manufacturers, it's everything. Prices have exorbitantly hiked in almost every walk of life and while initially Covid was an acceptable reason, it's just greed now keeping these ridiculous prices. Houses where I live have almost doubled in two years in price. And as long as people keep paying, the prices will stay where they are. And given people were happilly (myself included) shelling out £1700 for a 3090 in 2020, and still are, nothing will change.
2020 and 2021 were great for chip manufacturers, as they could increase price with little pushback from consumers.
The pandemic, working and studding from home, were great excuses to raise prices and increase profit margins.
So these companies are now struggling to find reasons to keep these inflated prices and absurd profit margins.
It's not just chip manufacturers, it's everything. Prices have exorbitantly hiked in almost every walk of life and while initially Covid was an acceptable reason, it's just greed now keeping these ridiculous prices. Houses where I live have almost doubled in two years in price. And as long as people keep paying, the prices will stay where they are. And given people were happilly (myself included) shelling out £1700 for a 3090 in 2020, and still are, nothing will change.
Danny_G13
Senior Member
Posts: 921
Joined: 2005-02-14
Senior Member
Posts: 921
Joined: 2005-02-14
#6014502 Posted on: 05/04/2022 03:36 PM
The conspiracy is simply their profit margin. Covid was great for so many companies, who got a valid reason to raise prices, and now pretend it's still necessary.
Would I reduce my price when the raised level still sold great? No.
I dont believe that. Higher prices can impact their market share. What you are saying would have to involve Intel, AMD, Nvidia colluding in some large scale conspiracy. Not gonna happen.
The conspiracy is simply their profit margin. Covid was great for so many companies, who got a valid reason to raise prices, and now pretend it's still necessary.
Would I reduce my price when the raised level still sold great? No.
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Senior Member
Posts: 4819
Joined: 2009-09-08
2020 and 2021 were great for chip manufacturers, as they could increase price with little pushback from consumers.
The pandemic, working and studding from home, were great excuses to raise prices and increase profit margins.
So these companies are now struggling to find reasons to keep these inflated prices and absurd profit margins.
All just excuses.. They're all just used to higher prices and making extra profit.. disgusting reality.
For me it also smells of lame excuses/reasons so they can continue to sell their stuff at higher prices...