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.

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

Alex Blake
In ancient times, people like Alex would have been shunned for their nerdy ways and strange opinions on cheese. Today, he…
Intel’s CEO has great news about Arc Alchemist graphics
Intel CEO Pat Gelsinger smiling and looking at an Arc A770 chip

Gamers,  there is good news about Intel Arc Alchemist. It comes in the form of reassurances that the Intel Arc A770 graphics cards are basically ready for retail, and they come from none other than Intel's own CEO, Pat Gelsinger.

"We are now getting first batch of A770 cards ready for retail ... excited!" Gelsinger wrote on Twitter, along with a pic of him happily holding a fully assembled and sleek-looking Arc A770 GPU. Although he didn't set an official release date, it's looking like Intel is ready to drop these bad boys any day now.

Read more
Don’t worry – the RTX 4090 won’t cause another GPU shortage
Render of an Nvidia GeForce RTX 4090 graphics card.

We're sitting on the edge of Nvidia GTC, where it's all but confirmed the company will launch its next-gen RTX 4090 graphics card. The last time we were in this situation, almost two years ago to the day, Nvidia's launch kicked off what would become the worst GPU shortage we've ever seen, and it's fair if you're nervous we might be caught in that situation again.

The RTX 4090 will almost assuredly sell out when it launches, but you don't need to get your F5 key ready to get a GPU. There were several factors that went into the GPU shortage, none of which apply this time around. If you've been waiting for next-gen GPUs to pull the trigger, don't get caught up in the launch hype -- all signs suggest that the RTX 4090 won't cause another GPU shortage.
Where demand meets supply
Simon Byrne's Berta 2 mining rig. Techarp

Read more
Intel has a plan for how to beat Nvidia with Arc Alchemist
Intel Arc Alchemist reference design render.

Intel has revealed that it plans to compete against, and beat, the Nvidia GeForce RTX 3060 with its upcoming Arc Alchemist graphics cards. However, it knows that in terms of performance, the best it can hope for is trading blows in some games.

To combat Nvidia and AMD, Intel is preparing a different approach, and it seems fully committed to its discrete graphics card line. Will that be enough to keep the GPUs afloat?
Arc Alchemist trades blows with Nvidia, but not always

Read more