Intel has warned the public that the global chip shortage will affect the supply of processors for consumers.
Intel’s CFO, George Davis, announces that the Intel users might be experiencing “acute” supply problems in Q3 of 2021 which is now until September 2021. This comes after CEO Pat Gelsinger says the global chip shortage is most likely to last until 2023.
Intel CFO Gave Statements About Global Chip Shortage
According to the story by TechRadar, Davis said in a recent earnings call, which was transcribed by Seeking Alpha, that the persistent industry-wide component and substrate shortages are widely expected to lower Client Computing Group or CCG revenues quite sequentially.
Davis noted that they expect shortages to still continue for a number of quarters but it still could be acute for clients in Q3 of 2021. When it comes to the data center, it was noted that they expect enterprise, government, and even cloud to show recovery further in Q3, 2021.
Intel on Self-Sufficiency
The central issue as of the moment is a problem with substrate supply and as Tom’s Hardware, which reportedly picked up on this, points out, the specific issue comes with insufficient Ajinomoto ABF substrates.
Lacking these, Intel is reportedly constrained when it comes to the amount of CPUs that the company can actually make. It was noted that while the company has been able to make moves to work on its self-sufficiency, finishing the production of ABF substrates in-house, as well as investing in ABF substrate makers, the efforts won’t have an impact towards mitigating shortages until later this 2021.
Davis on Q3, 2021 and Q4
Davis also noted that they did a great job when it came to eating up a lot of their substrates, some of which they noted that they thought they would have available to the public in Q3 2021.
Davis also added that in Q3, 2021, they reportedly saw that they had a real supply challenge but it is just “acute.” In Q4, however, they are now doing everything they can in order to help their own substrate suppliers increase in supply.
This includes finishing up a number of their manufacturing in Intel’s own facilities. This is reportedly something that they could do as an integrated device manufacturer or IDM.
Intel is not the only company to be affected by the global chip shortage. Even other tech companies like NVIDIA, AMD, Sony, Microsoft, and Apple have somehow acknowledged the global chip shortage. The reason why this is such a big deal is because the shortage has caused prices of goods to swell due to their rarity. The same is true with the PlayStation 5 as well as certain GPUs and CPUs. With the global chip shortage expected to last until 2023, we might expect scalper prices to remain the norm for quite a while.