While Ford CEO Jim Farley (and some analysts) remain optimistic that the global semiconductor chip shortage could be over by the start of Q3, others aren’t painting such a rosy picture. Taiwan – the world’s largest chip manufacturer – doesn’t know when the shortage might end, and many experts believe that it could go on at least until the end of 2021 and possibly longer. Now, Intel CEO Pat Gelsinger has admitted that the problem likely won’t be completely resolved for a few more years.
“We have a couple of years until we catch up to this surging demand across every aspect of the business,” Gelsinger said during an interview with CBS’ 60 Minutes. Gelsinger also pointed out that a mere 12 percent of the world’s chip manufacturing takes place in the U.S., which has declined from 37 percent 25 years ago.
“Anybody who looks at the supply chain says, ‘that’s a problem,'” the Intel CEO added. “This is a big, critical industry and we want more of it on American soil. The jobs that we want in America, the control of our long-term future.”
Intel is currently scrambling to increase its own chip production by retooling its factories, but that process will take several months to complete. Meanwhile, amid a flurry of production cuts, Jim Farley recently participated in a White House summit with other automakers, chipmakers, President Joe Biden, and members of Biden’s staff regarding the shortage. In that meeting, Biden promised that legislation addressing the issue and congression funding to support production were on the way, though two auto industry groups are pushing the Senate for a resolution.
The chip shortage forced Ford to cut its Q2 production by a full 50 percent, and the automaker has informed its dealers that they will not receive any meaningful amount of new vehicle inventory until August as a result.
We’ll have more on the impacts of the chip shortage soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.
The perfect vehicle to embody "horsepower."
The original owner's wife wasn't a fan, so it sat for decades.
Closing the week at $11.74 per share.
Still offers the same equipment, though.
At least both drivers seemed aware of the situation and could avoid it.
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Interesting
JimBob doesn’t seem to have a good handle on the problem!
Chip shortage huh? Build cars/trucks without 'em the same way Henry did.
Makes too much sense, right?
This country has 'technologied' itself right into the corner. Go back to building 'em without all the electronic gobbledegook.
Problem cured.
See how simple that was , Farley?
Really Intel? Why are you lecturing us about making more chips in the US? I thought you made the chips. Do something yourself!
I agree Bob. Sometimes you can’t tell people, you need to show them. How many chips are inside critical components like weapons, communications, power grid, dams, trucking, traffic lights and on and on that were made in China? Can’t wait for Trump to be back.
Stupidity is a choice.
The limitation of semiconductor products and Joe Biden's limitations go together like chips and dip...