Intel's Pat Gelsinger believes it will take time to return to normal chip and semiconductor production. The shortage has affected manufacturing equipment, medical equipment and computers.
Intel plans to expand its component production in the United States to eliminate production bottlenecks and reduce its reliance on TSMC and Samsung, with whom it is experiencing production issues. Its plan includes building two assembly plants at two new factories in Arizona. With this expansion, Intel hopes to become a major supplier of foundry capacity in the United States and Europe to serve customers worldwide. The United States currently accounts for 12% of global semiconductor manufacturing, and Intel's plans would increase that figure to 30%.
[amazon box=»B0883NPQST» title=»Intel Core i5-10400″ star_rating=»none» template=»table»]More Intel factories to create local jobs and end chip shortages
The administration of President Joe Biden established a plan to spend $ 50 billion to subsidize semiconductor manufacturing to provide a boost to domestic production. Gelsinger says the government and the industry as a whole need to invest more and has lobbied, along with Tom Caulfield of semiconductor foundry GlobalFoundries, for the United States to become more aggressive in hopes of capturing a third of the global market.
Although an increase in manufacturing would surely be profitable for Intel, the new factories will not be built solely to make its chips and components. Intel also plans to offer the factory's services to other companies that want to outsource the manufacturing of components or that want to have them closer to their warehouses or stores.
But the creation of these factories is not exactly close, since even the most optimistic estimates of Intel believe that the stock of components and chips will not recover, it will last well into 2022. And no matter how much effort they put, it will not return to previous levels from the pandemic through 2023. Gelsinger says Intel has already engaged with component suppliers to increase production at its factories.
Source: Digital Tendrs