Intel said its factories will start making Qualcomm chips as it laid out a road map on Monday to expand its new foundry business to catch rivals such as Taiwan’s TSMC and Samsung Electronics by 2025.
Chip maker Intel said it still faces supply chain constraints and gave an annual sales forecast that implied a weak end of the year.
Chip makers from Taiwan to the US are cranking up production to address shortages that have hammered car manufacturers and other customers as they try to emerge from the coronavirus pandemic.
The world’s most important chip maker expects revenue to climb 20% this year. But the incredible cost of meeting outsize demand is starting to eat away at the bottom line.
Intel CEO Pat Gelsinger has predicted the shortage of semiconductors that’s hurting industries from automotive to consumer electronics will bottom out in the second half of this year.
Car makers slashed production. PlayStations got harder to find in stores. Broadband providers faced months-long delays for Internet routers. The reason? An abrupt and cascading shortage of semiconductors.
Intel’s CEO said on Monday it could take several years for a global shortage of semiconductors to be resolved.
Nvidia forecast second quarter revenue above analysts’ estimates on Wednesday. However, it could not say how much of its recent revenue rise was driven by the cryptocurrency market.
ARM on Tuesday deepened its rivalry with Intel by releasing a batch of new chip technology aimed at grabbing more market share among laptop computers.
Taiwan has suffered a sudden reversal of fortunes. The pandemic comes just as a drought triggers power outages, stoking economic uncertainty and threatening the world’s chip supply.