Global Chip Shortage Could Last Until 2024, Says Intel CEO

Intel CEO, Pat Gelsinger, Reveals That The Chip Shortage Will Last Longer Than Expected

Intel, a semiconductor giant, states that it has faced a shortage in quarterly chip sales as there has been a slowdown in PC purchases. During the COVID-19 pandemic, the company profited significantly from the shift to remote work and learning, resulting in a rush for desktops and laptops, many of which used Intel chips. PC shipments fell about 5% in the first quarter, according to data from International Data. This indicates that two years of frenzied demand may have reached its limit.

The segment of the company that deals with chips for PCs saw sales decline by 13%, approximately US$ 9.3 billion, according to a report released on Thursday, the 28th. Gelsinger, the CEO of Intel, states that the sales slowdown was mainly caused by the decline in consumer demand for low-cost PCs; in contrast, corporate demand for computers remained strong. The Intel CEO further mentioned that the global chip shortage, which he previously estimated would last until 2023, is likely to last even longer as chip manufacturers struggle to acquire enough equipment to ramp up production to meet demand.

Pat states that the shortage will last until 2024, as the equipment scarcity is affecting the industry’s capacity to increase supply at a steady pace. The CEO of Intel also mentioned that such challenges will not hinder the expansion of the industry he leads, Intel, which includes new factories in the U.S. and Europe in the coming years.

Chip Industry Sectors Struggle Due to Market Shortage

Various sectors of the chip industry are being directly impacted by the chip shortage in the market, a situation that has persisted since 2020 and intensified further during the COVID-19 pandemic.

According to Broadcast, despite the tireless efforts of several industry giants, such as Intel, plans for new chip factories, as well as the expansion of existing chip industries, will not change the situation in the short term, according to experts. However, a feasible solution to alleviate the problem is to improve yields in the chip manufacturing process, something that can be achieved through a newly refined printing technique.

Researchers in Singapore Find Solution for Chip Shortage

Researchers in Singapore have found an alternative that may help to address the severe chip shortage in the market. This solution is nanotransfer printing, a process that uses a mold to print metal onto a specific substance, which in this case would be the silicon wafer, through pressure. 
The technique developed by the researchers had been used before; however, it involved a chemical adhesive layer that not only caused surface defects when printed in large quantities but also posed health risks to individuals. For these reasons, the technology did not advance.
Thus, with new research, scientists have managed to develop a chip printing process that eliminates the need for chemicals. The result of the new research was a wafer almost 100% free of defects, meaning that little to no chip is discarded during production.
The initial lab tests show that more than 99% of the chips produced with this new technique are usable.  Although the new method is still under evaluation, the researchers who developed the idea already believe that this alternative can be easily scaled for mass production by major chip manufacturers, such as South Korea’s Samsung and even Intel. This solution found by these researchers may help alleviate the chip crisis in a shorter time frame than expected.