New Intel Chief Executive Pat Gelsinger said on Thursday that supply constraints, and the “immense” investment needed to meet demand, mean that the chip shortages affecting the automobile industry and other sectors are likely to last two more years.
- It “will take a while until people can put more capacity in the ground,” he explained, as Intel INTC, -5.32% announced first-quarter results that beat sales and earnings expectations.
- Germany’s Daimler DAI, -0.11% was the latest car maker to warn on Friday that the persistent shortage of semiconductor chips could affect its sales in the second quarter. Rivals Renault RNO, -1.03%, Volvo VOLV.B, +1.15% and BMW BMW, +0.15% issued similar warnings this week.
- Jaguar Land Rover said on Thursday that two of its British factories will close temporarily as of next week, due to Covid-19-related supply chain disruptions including the lack of semiconductor chips.
- President Joe Biden last week used a meeting with auto and technology executives to push his $2.3 trillion infrastructure spending plan to plead for a stronger domestic chip-building industry.
Read: Volvo Crushed Earnings. The Truck Maker Can Shrug Off the Chip Shortage.
The outlook: One year of supply-chain disruptions has forced governments the world over to examine ways to “reshore” critical industries, with chip making high on the list of strategic priorities. Last week, the U.K. government launched a probe of the $40 billion Nvidia NVDA, +2.79% takeover of U.K.-based Arm on security grounds.
April 24, 2021 at 02:56AM
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Global chip shortages to last 2 more years: Intel CEO - MarketWatch
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