Intel Corp.’s new CEO Pat Gelsinger expects the global chip-supply constraint to last for two more years, reports The Wall Street Journal. Gelsinger says supply constraints will continue until more capacity is generated to address demand
The chip shortage has disrupted manufacturing, including causing temporary shutdown of factories.
This month, White House met executives from the chip and other industries to devise ways to address the shortage.
President Joe Biden allocated $50 billion in the infrastructure package to address the chip shortages.
Comments by Gelsinger follow Intel’s first-quarter sales dip of 1% to $19.1 billion, with sales projections of $18.9 billion in the second quarter.
Intel seeks to become a major contract chip maker, as well as making semiconductors and has set aside $20 billion to build new semiconductor plants in Arizona.
The company also seeks to increase outsourcing of chip production in line with demand.
Intel stock is currently declining. INTC: NASDAQ is down 2.80% on premarket.
