Intel's CEO Says Chip Shortage Could Last "A Couple Of Years" In New '60 Minutes' Interview
Intel's CEO Says Chip Shortage Could Last "A Couple Of Years" In New '60 Minutes' Interview
BY TYLER DURDEN MONDAY, MAY 03, 2021 - 10:37 AM
Intel's CEO has been the latest in a chorus of voices stating
that the ongoing semiconductor shortage is going to last for a "couple of
years".
Speaking on 60 Minutes Sunday
night, chief executive officer Pat Gelsinger said: “We
have a couple of years until we catch up to this surging demand
across every aspect of the business.”
He also noted that U.S. dominance in the industry has fallen so
much that only 12% of the world's semiconductor manufacturing is done in the
U.S., down from 37% about 25 years ago, according to Bloomberg.
“And anybody who looks at supply chain says, ‘That’s a problem’.
This is a big, critical industry and we want more of it on American soil: the
jobs that we want in America, the control of our long-term technology future,”
he said.
He seems to be directing his focus more toward operations and
less toward the company's stock price, stating Intel won't be “anywhere
near as focused” on buying back stock as the company once was.
Mark Liu, chairman of Taiwan Semiconductor Manufacturing Co.,
also told 60 Minutes that the company was trying to "squeeze" out as
many chips as possible: “Today, we think we are two months ahead, that we
can catch up (to) the minimum requirement of our customers — by the end of
June. There’s a time lag. In car chips particularly, the supply chain is long
and complex.”
Recall, just days ago, we wrote that
Morgan Stanley had also suggested the shortage could continue "well into
2022".
Adam Jonas and Joseph Moore at Morgan Stanley contend that the
constraints could last into next year. Of course, both analysts see it as an
opportunity to "buy the dip" (when is it not?) and bet on the longer
term EV opportunity, the analysts said in a note out late last week.
"Ford’s changed outlook was the first major profit warnings
in auto since the worst of COVID," the analysts wrote, calling the
automaker's report a "bit of a reality check" for investors who have
been chasing momentum from OEMs.
Morgan
Stanley's report also took note of lack of manufacturing on U.S. soil,
concluding with the realization that "on-shoring and diversification
of geographic supply sourcing" should be thrust into focus.
Last week, Ford was the latest auto
manufacturer to slash its expectations for full year production
as a result of the shortage.
Two weeks prior to Ford's report, we wrote about how
the chip shortage was becoming a self-fulfilling prophecy, due to a
shortage of chipmaking equipment. In the days leading up to that report, we wrote that
Taiwan Semiconductor was also warning that the global chip shortage may
extend into next year.
In early April, we wrote that
U.S. exporters of semiconductor chipmaking tools were struggling to get
licenses to sell to China. The U.S. government had been dragging its feet
in approving licenses for companies to sell chipmaking equipment to Chinese
semi company SMIC, we noted at the time.
You can watch the full 60 Minutes interview from this week here.
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