Intel predicts delayed rebound for chip supply

While electronic component shortages in the semiconductor ecosystem were initially expected to last until mid-2022, constraints will persist through the rest of the year and into 2023.

South Africa, like the rest of the world, has experienced the knock-on effect of these constraints, with some firms in the local tech distribution channel“Supply chain constraints continue to temper demand, as shortages of substrates, components and foundry silicon have limited our customers' ability to ship finished systems globally,” Doolabh comments.

“With control over our manufacturing network and supply chain, we can react to rapid changes in demand and help solve challenges for our suppliers and partners. Equally important, as an IDM, we remain more resilient to dramatic foundry price increases as only a portion of our volume is produced by third-party foundries.”Given the unprecedented global demand for semiconductor components and substrates, Doolabh indicates Intel is working to advance its chip manufacturing capacity.

Speaking about Intel's plans to grow its business in SA, the country lead says digitisation of everything is driving unprecedented demand in the semiconductor industry. He believes Intel is “uniquely positioned to capitalise” on this. “We executed well against that strategy in Q1, delivering key product and technology milestones and announcing plans to expand our manufacturing capacity in both the US and Europe to meet the continued demand for semiconductors and drive a more balanced, resilient global supply chain.”According to Intel, the processors introduce its performance hybrid architecture to mobile platforms for the first time, working 40% faster than the previous generation mobile processors.

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