Chip shortage to continue for up to 2 years: Intel CEO

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San Francisco, July 23 | Intel CEO Pat Gelsinger has said that the massive chip shortage will continue for at least two more years before the industry is able to completely catch up with the demand.

The strong demand environment continues to stress the supply chain across the world.

“While I expect the shortages to bottom out in the second half, it will take another one to two years before the industry is able to completely catch up with demand,” Gelsinger said during the Q2 earnings call on Thursday .

“IDM 2.0, which combines our internal manufacturing capacity with the use of third party foundries fast-positions us to weather these challenges and work with our ecosystem partners to build a more resilient supply chain,” he informed.

Intel laid out its IDM 2.0 strategy in March, moving the company forward toward its goal of delivering leadership products in every category in which it competes.

Intel reported a strong Q2 and raised full-year revenue guidance by $1 billion despite a highly constrained supply environment.

In the second quarter, the company generated $8.7 billion in cash from operations and paid dividends of $1.4 billion.

“Q2 revenue was $18.5 billion exceeding our guidance by $700 million. This upside was led by continued strength in our PC business and earlier-than-expected recovery in both our IoTG business and the enterprise portion of the data center segment,” said George Davis, Chief Financial Officer.

Gelsinger said that the ecosystem is back to shipping over one million PC units a day despite grappling with component shortages.

“I expect PC TAM growth will continue in 2022 and beyond, driven by three factors — PC density or PCs per household is increasing as COVID has irreversible changed the way we work, learn connect and care for each other,” he added.

The replacement cycles are shortening on a larger and agwing installed base, the shift to notebooks, the deployment of new operating systems and new better experiences, “such as our Evo platform will continue to drive refresh on the 400 million PCs over four-years old that are running Windows 10,” the Intel CEO noted.

Intel has created the Accelerated Computing Systems in Graphics group led by Raja Koduri to increase the company’s focus in key growth areas of high performance computing and graphics.

Source: IANS

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Share Market Closing Bell: Market ends marginally lower amid volatility

Share Market Closing Bell: Market ends marginally lower amid volatility

Dalal Street witnessed tug of war between bulls and bears as Sensex settled at 54208.53 losing 109 points or 0.20 percent and Nifty ended at 16240.30 with loss of 19 points. Bank nifty closed the session at 34163.70 levels with loss of 138 point after erasing early session gain.

BSE Midcap and BSE Small cap indices turned flat after rising around half a percent each. On the sectorial front, Nifty Pharma and FMCG have contributed a percent each on a closing basis. On the flip side Nifty Realty, Nifty PSE ended with losses of 1.75 percent and 1.73 respectively. In Nifty stocks, TATACONSUM, CIPLA and ADANI PORT were the top gainers while POWERGRID, BPCL and TECHM were the prime laggards.

In the daily chart Nifty has ended with a bearish candle. However 16200 levels are protected throughout the day. Index might face high volatility on weekly expiry day. Riding against the trend may not be beneficial for short term traders. According to volume profile 16100 and 16000 may act as immediate support.

Indicators such as MACD and RSI are still struggling to overcome from oversold zone in the daily time frame. From the time cycle prospect Index would remain highly volatile till 27th May of this month. Bollinger band indicates 16650 would remain strong resistance in coming days. On the other hand, Bank nifty has support at 33400 levels while resistance at 35000 levels.

Om Mehra
Research Associate
Choice Broking

Source: Choice India

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