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Intel CEO: chip shortage not ending anytime soon

Intel CEO: chip shortage not ending anytime soon

Intel's $20B investment will help build chips in Arizona.

The global semiconductor shortage is wreaking havoc on industries including autos, cell phone makers, and consumer electronic products.


Despite a proactive White House, with its efforts to boost supply chains and Intel's $20 billion investment to build two plants of its own, the shortage is not going away anytime soon according to CEO Pat Gelsinger.

"Our estimates are it’s probably two years for the industry to work through it because, as you say, it takes a while to build a fabrication, or a fab, as we like to call it in the industry," he said during an appearance on Barron's Roundtable.

The world's largest chip maker, in March, announced a $20 billion investment to build two new plants in Arizona which will take time to come online.

Intel’s Ocotillo campus in Chandler, Arizona, is the company’s largest U.S. manufacturing site. Four factories are connected by a mile-long automated superhighway to create a mega-factory network. In March 2021, Intel announced it will invest about $


"We’ve just announced two major new fabs in Arizona. They’re a meaningful acceleration to our manufacturing capability, but it takes a while for them to come online" he explained.


Automakers including Ford, GM and Chrysler, have paired production amid the shortage.

Despite raising its annual forecast, Intel shares slumped 5% on Friday but have still gained nearly 19% this year.

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