Global chip shortages to last 2 more years: Intel CEO

Biden last week used a meeting with auto and tech executives to push his $2.3 trillion infrastructure spending plan to plead for a stronger domestic chip-building industry

The manufacturing of chips at a Jiejie Semiconductor factory in Nantong, eastern China.

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New Intel Chief Executive Pat Gelsinger said on Thursday that supply constraints, and the “immense” investment needed to meet demand, mean that the chip shortages affecting the automobile industry and other sectors are likely to last two more years.

The outlook: One year of supply-chain disruptions has forced governments the world over to examine ways to “reshore” critical industries, with chip making high on the list of strategic priorities. Last week, the U.K. government launched a probe of the $40 billion Nvidia NVDA, +2.14% takeover of U.K.-based Arm on security grounds. 

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About the Author

Pierre Briançon

Pierre Briançon is a senior writer at Barron's Group. He has written for Politico, Reuters Breakingviews, Le Monde and Libération. Follow him on Twitter: @pierrebri.