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Intel CEO: Semiconductor shortage will take 'a couple years' to fix

·Anchor, Editor-at-Large
·2 min read
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Intel CEO Pat Gelsinger is realistic about when the semiconductor shortage weighing on everything from U.S. auto production to computer availability will abate.

"I think it takes a couple of years," Gelsinger told Yahoo Finance Live. Gelsinger blamed the shortage on very strong demand for computing equipment — from laptops used for work from home to tech in new cars — during the COVID-19 pandemic. "We can't build fabs overnight, it takes a couple of years to get built up."

Intel (INTC) is stepping up big-time to help address the chip shortage.

The company — which has been pressured to outsource more of its chipmaking — announced Tuesday during a business update its plan to invest $20 billion to build two new factories in Arizona. Intel also committed to making chips for other companies in a bid to increase industry capacity.

"There is an extraordinary demand for semiconductors as we're seeing basically, the world is becoming more digital in every aspect," Gelsinger said.

Besides Intel, the Biden administration may be close to lending a hand following their new review of the industry. President Biden said in late February he will push for $37 billion in funding to increase chip manufacturing in the country.

Said Gelsinger of the potential government support, "It's a major, major statement by the administration. The winds are flowing in the right direction. Our strategy that we announced is simply to align with those directions in a very substantial way."

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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