Intel CEO Pat Gelsinger told CNBC on Friday that he now expects the semiconductor industry to experience a shortage of supplies by 2024.

In an interview with TechCheck, Helsinger said the global chip crisis could be delayed due to the limited availability of basic manufacturing tools, which is hampering the expansion of the level of capacity needed to meet increased demand.

“This is one of the reasons why we believe that the total shortage of semiconductors will now carry over to 2024, according to our preliminary estimates in 2023, just because the shortage has now affected equipment and some of these factory ramps will be more complex.” said Helsingor.

The CEO’s comments came a day after the California chipmaker offered a forecast for the second fiscal quarter that was easier than expected on Wall Street. However, revenues and earnings for the first financial quarter exceeded analysts’ expectations. Shares of Intel fell more than 6% on Friday.

Pat Gelsinger, CEO of Intel, holds a semiconductor chip, testifying during a Senate hearing on trade, science and transportation called “Developing Next-Generation Technology for Innovation” at Russell’s Senate office building on Wednesday, March 23, 2022.

Tom Williams CQ-Roll Call, Inc. | Getty Images

The need for more semiconductors is growing over the years as the world becomes more digital and chips for processing are used in everything from smartphones to cars and washing machines.

However, the Covid pandemic caused an acute shortage as factories were disrupted at the same time as demand for consumer electronics increased. The deficit had significant economic consequences and contributed to the fact that the US economy experienced the hottest inflation since the early 1980s.

Since Gelsinger took over as CEO in February 2021, Intel has announced a number of major investments to geographically diversify chip production. The company spends significant funds on the construction of semiconductor plants, known as factories, in the United States and Europe. Most of the world’s chip production capacity is now concentrated in Asia.

“We have really invested in this relationship with equipment, but it will compress capacity building for us and everyone else, but we believe we are in a better position than the rest of the industry,” Helsinger said.

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