The failure of semiconductors, which will affect the technology and automotive industries from 2020, must continue until 2024 due to the shortage of production equipment, according to by Intel CEO, Pat Gelsinger. The logical interruptions caused by the COVID-19 pandemic that year impacted overall production, but other issues made for a dire situation. At one point, microchips were reserved for more traditional computers — now they’re in everything from microwave ovens to cars. Even most companies face problems. As a trillion dollar company, Apple is faced with some dizzying offers. Recent reports suggest that the problem will not be solved until now.
Purely logical considerations, global events are affecting microchip production and exacerbating the situation. It is hoped that the Russian-Ukrainian conflict will further damage chip availability, as both countries are the main exporters of critical components in modern processors. Russia is also a major generator of neon gas – used to make microchips. Otherwise, the refining of these gases will take place in Ukraine. As such, external conflicts are likely to affect the overall length of both processes. The economic sanctions imposed by the United States and its agents could also limit the production of neon and solar gas, limiting the number of microchips that can be made per year.
Gelsinger, who is currently in his second year as CEO of Intel, said: CNBC that the company now expects the chip shortage to persist into 2024. Previous reports suggest supply and demand problems could be resolved as early as 2022 or 223, but these estimates have been extended. As Intel and other companies prepare to invest in the manufacturing centers needed to increase production, similar disruptions will occur in hardware procurement. †That’s part of the reason we believe the global semiconductor failure rate will now be released in 2024, based on our previous estimates in 2023,” said Gelsinger em CNBC TechCheck. †Just because we run out of equipment and some factory ramps will be more vulnerable.†
Intel is investing in new locations and manufacturing methods, despite the supplement supply issues that are now impacting microchip manufacturing processes. The company made a $3 billion investment in its D1X semiconductor development plant in Oregon, the primary development site for Intel’s manufacturing processes. Historically, these improvements in manufacturing processes have become significant every two years as chips can be produced at a lower level. The embarrassment is expected to continue, Intel is advised to successfully open the new facility in April 2022, in consultation with the company. The site will be one of two new and updated buildings where the company’s engineers can make improvements in the line of professional processors and consumers.
Just as the company was willing to invest in the manufacturing equipment needed to improve its chips, it also invested in the engineers who will design the projects. For example, Intel contracted Jeff Wilcox – who was Apple’s system-on-chip (SoC) processors for more than a decade and who served as Apple’s lead system architect and didn’t start this year. He designed the Apple Silicon chips that were superior to Intel and got the most important processors everywhere in Apple. because while Intel hope the chip shortage persists in 2024, his willingness to invest in people and facilities that will develop new processors will certainly grow the company.
Source: CNBC, Intel