Global chip shortage will continue into 2024, says Intel boss

Intel CEO Pat Gelsinger believes the global chip shortage will continue into 2024.

Speaking to CNBC, Gelsinger said the shortage could continue due to constrained availability of key manufacturing tools.

"That's part of the reason that we believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged," he said.

Gelsinger's comments follow a lower-than-expected forecast for Intel's fiscal second quarter and a six percent drop in shares.

Last year, the Intel boss said the "semiconductor shortage is quite significant and the semiconductor industry was growing about five percent per year before Covid.

"Covid disrupted the supply chains, causing it to go negative... Demand exploded to 20 percent year-over-year and disrupted supply chains created a very large gap... and that exploding demand has persisted."

The shortage has affected the supply chains of all three home consoles, as well as PC graphics cards.

Despite the shortage, Xbox last week reported its biggest March in terms of hardware revenue for a decade.

As a result, Xbox has gained market share against PlayStation - in part due to supply shortages.

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