Technology

Intel CEO Says Chip Shortage Could Stretch Into 2023

Intel Corp. Chief Executive Pat Gelsinger sees the global chip shortage potentially stretching into 2023 as the U.S. semiconductor industry scrambles to catch up with surging demand.

The world-wide shortage has fueled rising prices for some consumer gadgets. Meanwhile, the auto industry has been particularly hard-hit as the lack of a key component causes production delays.

It could take one or two years to get back to a reasonable supply-and-demand balance in the semiconductor industry, Mr. Gelsinger said in an interview after the company posted second-quarter earnings on Thursday. Supply shortages should start showing signs of easing later this year, he said.

“We have a long way to go yet,” he said. “It just takes a long time to build [manufacturing] capacity.”

Mr. Gelisnger has been on a fast track to revive the chip maker after several years of missteps. Since he rejoined Intel in February, Mr. Gelsinger has committed to establishing a contract chip-making operation, announced major factory expansions and lured back talent to restore the Silicon Valley icon’s technology prowess. The company also is in talks to potentially buy GlobalFoundries for around $30 billion, The Wall Street Journal has reported, in what would be its biggest-ever acquisition and a signal of how serious Mr. Gelsinger is in making Intel a merchant chip producer.

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