Patrick Gelsinger, CEO of the world’s largest semiconductor chip manufacturer by revenue, Intel , said on Tuesday at The Wall Street Journal CEO Council Summit that the global supply chain crisis will last through 2023, partly because it takes three years to build a new factory.
Wide of the mark
The company has been heavily impacted by the pinching shortage in semiconductors and electronic components, “We think the period we are in now is the worst of it,” Gelsinger said, adding that “Intel had allowed its supply chains to consolidate in Asia, leaving the company without the geographic balance to cope with disruptions.”
Furthermore, he announced that the company plans to establish a “mega-site” manufacturing facility in the U.S. to “move production closer” and avoid shipping delays.
Reduced earnings
Despite the recent drop in company shares over predictions of reduced profit margins in the upcoming years, Gelsinger seemed self-assured with his performance “If you want to measure me quarterly, I fail. If you want to measure me on a two, three-, four-year basis of turning around an industry and an iconic company, that is what I want to be measured against.”
Global shortage
The COVID-19 pandemic has instigated an upsurge in consumer and business demand, leading to major disruptions across the global supply chain sector; moreover, the ensuing rise in demand for consumer electronics further expanded the market supply and demand gap leaving manufacturers in dire need of semiconductors and other components and consequently causing production delays and shortage of products.
