Intel’s CEO Believes The Ongoing Chip Shortage Could Last Until 2023

We’re in Year 2 of the new-gen consoles from PlayStation and Xbox, and it’s still as tricky as ever to get your hands on one. 

The ongoing shortage of chip supply is one reason. There are several factors that can explain this. These chips are used in the PlayStation 5 and Xbox Series X/S consoles, which means PlayStation and Xbox cannot produce as many as they’d like as quickly as they’d like. The chip shortage was predicted by Lisa Su, AMD CEO, in October. However, Intel’s CEO has stated that he thinks it will last until 2023. 

It is a good news story. Nikkei AsiaAccording to the, supply shortages in America are due to shortfalls in semiconductors not only in PCs and new-generation consoles but also in other technology pieces such as cars. 

“The overall semiconductor shortage is quite significant and the semiconductor industry was growing about 5% per year before COVID,’ Intel CEO Pat Gelsinger said during a press conference recently. “COVID disrupted the supply chains, causing it to go negative. Demand exploded 20% year-over-year and disrupted supply chains created a very large gap…and that exploding demand has persisted.” 

Gelsinger continued, adding that it takes time to build a capacity to address this gap and demand size. Gelsinger also stated that Intel has been building large facilities in Arizona and New Mexico to address the current shortage and that more will be coming to the U.S.A. and Europe. 

This chip shortage has, of course, affected PlayStation and Xbox, as anyone trying to buy a new-gen console knows, but it’s drastically affected Nintendo as well. Recently, the Japanese firm revealed in November that it expected to manufacture 20% fewer Switch consoles from now through March. It has also lowered its sales estimates by 6 million units. 

[Source: Nikkei Asia]

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