Global Semiconductor Shortage May Last Till 2023, Intel Says

If you’ve still been looking to get your hands on the latest tech, you may want to temper your expectations. It looks like there’s a good chance that the global semiconductor shortage may last well into 2023.

During the company’s Q2 earnings call, Intel CEO Pat Gelsinger spoke about how the “digitization of everything” has been accelerated by developments in AI and computing and has lead to “unprecedented demand” in the semiconductor supply chain that could take several years to catch up to in the wake of the pandemic. Gelsinger notes that the increased household PC density as a result of companies transitioning to a work-from-home model has contributed to the increased demand.

“While I expect the shortages to bottom out in the second half, it will take another one to two years before the industry is able to completely catch up with demand,” Gelsinger said. However, Gelsinger said that the stress on the semiconductor supply chain has created an opportunity for the industry to grow. “With major fab construction projects underway in Oregon, Arizona, Ireland and Israel, we are investing for the future, but we are also taking action today to find innovative ways to help mitigate industry constraints.”

While plans are underway to address these supply chain concerns, there does not seem to be much more that can be done in the moment. PC affordability and the hybrid work model as a result of the pandemic  lead to an unexpected boom in demand that has impacted numerous industries. The semiconductor shortage has especially impacted game console manufacturing, which is why it has been so hard to purchase a PlayStation 5, Nintendo Switch, and the Xbox Series X|S from anywhere.

Despite the seriousness of the situation, prospects are hopeful. Much work is underway to see that demand is met and while it may take some time before that happens, things should eventually return to normal given time.