Big Tech’s and automakers’ efforts to tackle the microchip crisis

AGI – Until 2024. The chip and semiconductor crisis may continue, at least according to Intel CEO Pat Gelsinger. Based on a number of internal estimates, the US multinational, which specializes in the production of semiconductors and microchips, predicts that Problems with the purchase of chips and semiconductors continue for another two yearswhile many until a few months ago had a hypothesis of an improvement in the situation in early 2023.

The uncertainties surrounding palladium and neon also weigh

In general, explained the director of the Santa Clara (California) giant, factories and equipment have been severely tested by several external factors, including the conflict between Russia and Ukrainewhich has sown new doubts about the future of semiconductors due to the uncertainty surrounding palladium and neon, raw materials that the area is rich in.

In March, Intel presented an investment plan for the development and production of chips in Europe (80 billion in 10 years, 4 and a half in Italy). The first 17 billion euros will be used for construction of a state-of-the-art mega-plant in Germany for semiconductor manufacturing, the creation of a new research and development (R&D) and design hub in France and investments in R&D, manufacturing, foundry services and backend production stages in Ireland, Italy, Poland and Spain.

One crisis, many causes

The global chip shortage was generated by a mixture of factors which includes the increased demand for technology during the pandemic, the COVID-related disruption of production, the growing demand for chips from automakers. And now the international crisis following the Russian aggression against Ukraine. Intel’s concerns (and choices) are shared by the entire consumer electronics sector (from toasters to kettles to fighter jets to game consoles that obviously pass through smartphones, tablets and personal computers) and the automotive industry itself. which forces large companies to reduce (or recalibrate)) their goals.

There is also a lack of machines for making chips

Not only is there a shortage of chips, but also chips for chip making machines. Buying new chip making machines was never a quick process due to their complexity and delicacy, but delivery times before the pandemic were measured in months. Say now Intel and TSMC (the company that makes Apple’s 5nm chips and produced 7nm Qualcomm Snapdragon 865 last year), that time can last up to 2-3 years.

Her Cupertino. Luca Maestris analysis

Apple CEO Tim Cook reported last week in the release of quarterly data that the company is “not immune” to the supply chain’s challenges, noting that the iPad business has had “very significant supply constraints.” Over the past quarter. In particular, the analysis of Apple’s CFO, Luca Maestri, focused on the supply constraints associated with the Covid-19 emergency: according to Maestri, they could damage sales by between $ 4 billion and $ 8 billion.

Nokia, a brake on growth

According to Nokia CEO Pekka Lundmark the Finnish telecommunications companies they would have grown faster in the last quarter if it had not been for supply chain problems. However, Lundmark sees improvements at the end of the year.

Daimler and Volvo

Car companies that tend to use less advanced chips are among those most affected by the impact of the chip crisis. Daimler CEO Ola Källenius said persistent supply shortages, especially in semiconductors, are one of the three biggest challenges in the current economic environment. Källenius added that the new Covid blocks in China, one of Daimler’s largest markets, could affect supply chains around the world. Volvo Cars CEO Jim Rowan said the company will be affected by the problem in the second quarter.

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