Skip to main content

Think the chip shortage is nearly over? Intel has bad news

If you’ve been hoping the PC chip shortage is going to end any time soon, Intel CEO Pat Gelsinger has some bad news for you. According to Gelsinger, things might not get back to normal until well into 2024.

The shortage has been almost inescapable in the news cycle, but the recent outlook has generally been more positive — indeed, 2024 is a later date than we’ve been seeing mentioned elsewhere. GPU supplies have been increasing and prices falling over the past few weeks, suggesting that there is light at the end of the tunnel. However, Gelsinger believes something has changed that alters the picture.

Related Videos
Intel CEO Pat Gelsinger delivers the Day 1 closing keynote at IAA Mobility.
Intel

In an interview with CNBC, Gelsinger explained that shortages are now affecting the supply of key manufacturing tools, instead of just causing a lack of materials used in the chips. Without those tools, making the chips becomes even more of a problem.

“That’s part of the reason that we believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged,” noted Gelsinger.

The new 2024 date is later than many industry luminaries had predicted, including AMD CEO Dr. Lisa Su and Gelsinger himself. Before this interview, Intel’s CEO believed we would not see a “supply-demand balance” until 2023, with things gradually improving every quarter until then. That opinion now appears to have changed.

With the pandemic disrupting supply chains the world over, Intel has tried to diversify the location of its manufacturing plants by opening factories in the U.S. and Europe. “We’ve really invested in those equipment relationships, but that will be tempering the build-out of capacity for us and everybody else, but we believe we’re positioned better than the rest of the industry,” Gelsinger said.

Still, with the shortage potentially now expected to continue for another 18 months, it’s probably a good idea to temper your expectations of when chip prices and availability might get better for the long run. While we’re currently seeing some improvements, the news from Intel shows we shouldn’t get too carried away.

Editors' Recommendations

Windows 11 has been causing problems with Intel graphics for months, and no one said a word
Microsoft has released a new Windows 11 feature that makes the OS photos app compatible with Apple's iClould.

If you're using Intel integrated graphics and you've been having some issues with DirectX apps, we may know the reason why -- outdated drivers paired with a recent Windows update.

According to Microsoft, a Windows 11 update may have caused some errors in Intel graphics. The update is not recent at all, so even if you haven't updated in the last few weeks, you may be affected.

Read more
ChatGPT Plus to bring priority access during peak times — at a hefty price
ChatGPT and OpenAI logos.

OpenAI's wildly popular ChatGPT AI has become a bit harder to access, but soon, you'll be able to move to the front of the line with ChatGPT Plus. While the free version is still available, priority will be given to subscribers.

This shouldn't come as a surprise despite OpenAI's non-profit status, given the huge network and computing costs that accumulate at the current rate of activity. The individual cost of $20 per month is relatively small if you're an avid user of ChatGPT. Over the course of a year that's $240, though, so it's still a substantial amount to spend if you want faster access.

Read more
Nvidia may have another monster GPU in the works, and the price could be outrageous
GeForce RTX logo is shown on the side of a graphics card.

Today, yet another sign of an upcoming Nvidia Titan RTX Ada GPU appeared -- the card's specs were spotted in a shipping manifest. This suggests that engineering samples of the monstrous GPU might be on their way to various development centers around the globe.

Everything points to the Nvidia Titan card making a big comeback in this generation, and the development seems to be farther along than it initially seemed to be. There's a catch, though -- how many people will even be able to afford it?

Read more