The COVID-19 pandemic, which is still disrupting the production of certain smartphones, has not finished talking about it. If the virus is not directly responsible for the announcement of the CEO of Intel, it is indeed one of its long-term consequences.
By undermining a system that was already operating in a very tense flow, the pandemic caused an unprecedented shortage of components. About 6 months ago, Pat Gelsinger, CEO of Intel, announced that we would have to wait until 2023 for a return to normal. Forced to revise his judgment, he now thinks that the shortage will spill over into 2024, which confirms recent statements by the Volkswagen group’s chief financial officer.
A complex situation depending on the area
According to the CEO of Intel, this new “deferral” is due to the fact that the shortages have affected the components necessary for the means of production, thus slowing down the resumption of activity. Not all sectors seem to be impacted in the same way.
Indeed, Intel said it was on the mend as “for the first time in years, Intel’s factories and our substrate supply are close to meeting our customers’ demand.” But depending on the sector, some manufacturers are 18 months behind compared to 6 months last year at the same time.
Among the hardest hit are network chip makers who are experiencing huge supply challenges, resulting in slow PC shipments.
Consumer processors on the decline
Despite its ability to keep up with demand, Intel’s Client Computing Group saw a 13% decline in business this quarter. An expected decline by Intel who attributes it to various factors such as: the abandonment of Intel processors by Apple the depletion of inventories at equipment manufacturers a drop in demand from consumers and the education market
Once again, with the pandemic, many people have invested in computer equipment (or renew) in order to be able to approach teleworking or distance learning and a temporary drop in demand was foreseeable.
It should be mentioned that the situation is still evolving and that the arrival of new production lines or new unforeseen events could impact the duration of the shortage.