Global Chip Shortage Crisis! Joe Biden Meets CEOs.

Global Chip Shortage Crisis Joe Biden Meets CEOs

The chip shortage has affected the world globally and a number of companies are suffering from this issue that could last a few more years, which means a few more years of suffering for tech companies. This week, multiple tech executives offered their own dismal estimates as part of their usual public financial disclosures, with the worst one coming in at a couple of years. 

Intel CEO Pat Gelsinger, who offered that vague timeframe to The Washington Post in an interview on Tuesday. He clarified that was an estimate for how long it would take the company to “build capacity” to potentially address supply shortages. The conversation came as Intel offered to step up for two supply chains particularly pinched by the silicon drought: medical supplies and in-car computer systems.

In previous statements, Gelsinger pointed to Intel’s current $20 billion plan to build a pair of factories in Arizona, and this week’s interview added praise for President Joe Biden’s proposed $50 billion chip-production infrastructure plan — though Gelsinger indicated that Biden should be ready to spend more than that. TSMC CEO C.C. Wei offered a similarly dire estimate to investors on Thursday, saying that the Taiwan-based company hoped to “offer more capacity” for meeting retail and manufacturing demand “in 2023.” TSMC, coincidentally, is moving forward with a manufacturing plant of its own in Arizona, which Bloomberg claims could cost “up to $12 billion,” despite the company clarifying that it intends to prioritize research, development, and production in its home nation.

Companies are trying their best to tackle this crisis as US president Joe Biden meets CEOs to tackle chip shortages. About 12 percent of the world’s semiconductors are made in the United States. Gelsinger said he lobbied to push it above 30 percent.

Source: SlashDot

We have also seen Samsung suffering badly from the chip shortage. In early 2021 they discontinued their flagship Note Series but after some months, decided to delay the Note Series because of chip shortage.

“There’s a serious imbalance of supply and demand in the IT sector globally. It is hard to say the shortage issue has been solved 100%,” 

Koh Dong-Jin – CEO Samsung

The chip shortage, specifically, points to particular weaknesses in the US high-tech manufacturing industries including automobiles. (GM Motors and Ford) are hit badly and their vehicles might miss some features in coming years.) 

What Caused The Semiconductor’s Shortage? 

During the Covid-19 pandemic, a lot of us were in isolation due to a complete lockdown for several months. Factories remained closed and a huge demand from the customers affected the supply chain demand. Political issues contributed as well, Thanks to former US President Mr. Donald Trump for the trade war against China.

Want to read more about what’s happening in technology? Read Monkey Equipped With Neuralink Device Plays Pong With Its Mind!

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Written by Hammad Khalid

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