In an interview with CNBC, Intel CEO Pat Gelsinger claims that the current chip shortage faced by the industry might continue until 2023 with some respite in supply every quarter of next year.
After a weaker than expected Q3 sales report by intel this week, the shares of the company nosedived on the market and fell more than 8% before closing in red for the week. The company blamed the current chip shortage for lower sales and said the shortage will last until late 2022.
With lots of products in the pipeline for next year, Intel is expecting a better sale outlook for 2022. Intel’s upcoming Alder Lake CPUs will compete with AMD’s Zen 4 based or Zen 3+ based CPUs next year, with the company also entering the discrete GPU market with its ARC based “Alchemist” GPUs launching in the first quarter of 2022.
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Intel is confident about the upcoming products competing and winning over the competition, the company isn’t much optimistic about the supply. While Intel manufactures its chips in its own fabs, the demand in the market is at an all-time high and their new fabs won’t be going live before late 2022.
Gelsinger said that PC demand was still strong and 2022 will only see incremental improvement in the semiconductor supply throughout the year until 2023.
“We’re in the worst of it now, every quarter next year we’ll get incrementally better, but they’re not going to have supply-demand balance until 2023,” Gelsinger said.
Both AMD and Nvidia also predict a slight supply improvement in 2022 and have plans to launch a slew of new products starting next year. The competition will be fierce next year between these companies and consumers trying to buy new products before bots claim them.
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