The global chip shortage is here to stay and is not going anywhere until at least 2023, says Intel’s CEO Pat Gelsinger. The executive made a statement to CNBC earlier this week where he said that the shortage will likely linger for a lot longer.
Gelsinger made this statement ahead of Intel’s third-quarter 2021 financial results. The executive also said that the industry-wide chip shortage has affected Intel’s chip business severely in the third quarter which led to an 8% drop in the company’s stocks.
He added that the chip shortage is at its worst at the moment, but is expected to get better incrementally with each quarter next year. However, the supply and demand gap cannot be closed until at least 2023.
But despite the low supply, Intel has reported a 5% yearly increase in revenue for Q3 2021 owing to a healthy demand for its DCG and IoT businesses. The company also generated an operating profit of $9.9 billion and paid dividends worth $1.4 billion.
According to Intel, the demand for its PC business remains strong, especially for the desktop and high-end notebook market.
Gelsinger predicts that the chip market will double to $1 trillion by the end of this decade. The market for bleeding-edge chip nodes will grow by 50% and the market for leading foundry services will also grow significantly.
The CEO said:
Customers continue to choose Intel for their datacenter needs and our third-gen scalable Xeon processor Ice Lake has shipped over 1 million units since launching in April, and we expect to ship over 1 million units again in Q4 alone.