Intel Tackles Semiconductor Shortage

A private company has taken the initiative to start producing chips for automakers. Pat Gelsinger, CEO of Intel, stated that the company is discussing semiconductor production within Intel’s network to have the product ready in the next six to nine months, Business Insider informs. “We are hoping that the semiconductors program can alleviate the supply chain. The plan does not need a three or four-year factory build, but maybe six months of new products certified on some existing processes. We have begun those engagements already with some of the key components suppliers,” Gelsinger informed Reuters. As previously reported by MBN, national vehicle production and exports in Mexico have declined due to the semiconductor shortage that impacts the automotive industry’s supply chain. The situation has caused several manufacturing plants to close, as Oscar Albín, Executive President of INA, announced.

Intel will expand its manufacturing capacity but will also use contract manufacturing while taking advantage of its Foundry Services, its new business unit. The US-based company, one of the few that designs and manufactures semiconductors, also plans to build new factories in Europe and North America to battle Asian dominance in the market, with Taiwan and South Korea leading the market. According to Reuters, Gelsinger is already in talks with the US federal government to build a strategy that could benefit Mexico, given the country’s problems with semiconductor supply.

The US administration is concerned about the impact on production that the chip shortage has had on automobile production, as it is a key sector for the regional economy. “China and the rest of the world are not waiting and there is no reason for Americans to wait. We are investing aggressively in areas like semiconductors and batteries,” US President Joe Biden recently stated.

The EU is also considering building an advanced semiconductor factory in Europe to avoid relying on Asia for technology, Bloomberg reports. As the automotive industry develops and transfers to new technologies, the demand for smaller semiconductors has increased.