Intel may produce chips for automakers to ease Global chip shortage effect

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Intel may produce chips
Source: interestingengineering.com

With present technology, many companies are showing keen interest in designing their own chips. Among them, Intel company is one of the last companies to design and manufacture its own chips. In addition to this, Intel is planning to open new factories up to outside customers. Intel not only made its own chips but also started outsourcing chip designing for others. With the recent update, Intel may produce chips for automakers within six to nine months.

The chief executive of Intel informed Reuters on Monday, that the company is in talks to begin producing chips for automakers. It will lighten the effect of global chipset shortage on automakers. This global chipset shortage has troubled even the world’s leading automakers to the point where they have been forced to either halt or slow down vehicle production.

Based on reports, Intel is talking to companies that design chips for automakers about manufacturing those chips inside its factories. This will help Intel to produce chips for automakers within six to nine months. The report also includes that Intel chief executive officer Pat Gelsinger met with White House officials to discuss the Global shortage of chipsets that had seriously impacted the computer supply chain for months.

Here are the details of recent news that Intel may produce chips for automakers

Intel Chief Executive Officer Pat Gelsinger on Monday told White House officials during the meeting addressing the Global Shortage of chipsets, That Intel will open its current factory network to auto chip designing companies. This will provide a better immediate solution to the shortage that has impacted assembly lines at Ford Motor Co and General Motors Co.

Gelsinger further added that “we are hoping that some of these things can be alleviated. For that, it may not require three or four-year factory builds. But it may need six months of new products being certified on some of our existing processes”. Based on reports Intel seems to be working on all the necessary arrangements with some of the key component suppliers.

However, Gelsinger did not reveal any component supplier’s names. But informed, that the work could take place at Intel’s factories in Oregon, Arizona, New Mexico, Israel. Also, some previous announcements are in favor of the news that Intel may produce chips for automakers. Intel chief executive officer Pat Gelsinger unveiled the new business called Intel Foundry Services, as a Standalone Foundry Business Unit last month. At Intel’s “Engineering the Future” announcement.

Also, he stated that Intel would put its fabs to produce x86, Arm, and RISC-V core chips for external clients. In addition to this, Intel made a nearly $20 billion dollars investment into expanding its fabs in Arizona to help it better meet the present demand for external partners.

Global chipset shortage led Intel to produce chips for automakers

There are many factors that may have led Intel to produce chips for automakers. One of them is this COVID crisis has caused a huge demand for at-home entertainment. Also, cryptocurrency miners have scooped up graphics cards to capitalize on rising Ethereum prices. Which made them pay high prices for chips thinking that they will still be going to make a profit.

However, this shortage had impacted mainly the automotive industry in the worst manner by far. This Global chipset shortage even caused automakers to drastically cut down their orders for chips at the COVID crisis time. Because many thought that sales of cards would decline rapidly but quite the opposite happened as car sales rapidly grew.

When automakers limited their chip orders, the manufacturers of those chips, decided to sell their max capacity to the electronic companies. Which have boomed unexpectedly during the crisis. Intel CEO Gelsinger stated that Intel being the only major chipmaker with several factories in the United States, may produce chips. Intel may begin developing chips within as little time as possible like six to nine months.

In addition to this, Intel has already decided to open up its manufacturing facilities to other companies. Othe companies like Nvidia and Apple’s impact on its market share. Also, Intel recently confirmed that it will make its own chips designed for servers. An area where Intel has a very good reputation and track record.

Other details

The automotive industry has been one of the industries that had been impacted negatively by the Global semiconductor shortage. In addition to this, well-known car companies like Ford and GM are forced to shut down production due to a lack of parts. If Intel produces chips for automakers within a year, it could provide much-needed help from the company to mitigate the Global chipset shortage.

Because the Global chipset shortage has become so critical to the point that the Biden administration started to involve. The president arranged for a review of the semiconductor supply chain in an executive order. And invited and hosted the executives of companies like Intel, Google, Ford, GM, and Dell at the White House. For today’s CEO Summit on Semiconductor and Supply Chain Resilience.

Intel may produce chips for automakers within six to nine months seems to be very close to happening. If Intel succeeds to fulfill this demand then it would likely reduce the influence of other country chip productions in the American market.

Conclusion

Based on Reuters reports, Intel may produce chips for automakers within six to nine months. Intel’s CEO Pat Gelsinger also informed that chipmaking is already being discussed with companies that design chips for cars. This news highlights the significance that Intel is placing on its new business as a producer of chips for other companies. However, Intel’s plans to produce chips for automakers may help in mitigating the Global chipset shortage that mainly impacted the Automobile industry.