Intel has come up with a plan to help auto makers deal with the global shortage of semiconductors that has caused production halts for some companies, such as General Motors.
The auto industry has been one of the areas hardest hit by the ongoing global shortage of semiconductors, as auto companies have been forced to halt production or make changes to vehicles due to a shortage of spare parts.
The global shortfall has reached the point where the Biden administration is looking to intervene, with the president calling for an executive order to review the semiconductor supply chain and hosting corporate executives, including Intel, Google, Ford, General Motors, Dell and TSMC, at the White House.
Intel CEO Pat Gelsinger said Interview With Reuters: Intel may start producing semiconductors on demand for car companies within six to nine months, and commented that the chip industry is in discussion with companies that design chips for cars.
He added: We hope that some of these things will be mitigated, and it does not require building a factory for three or four years, but new products can arrive within six months, and we have started talks with companies that design chips for car manufacturers to manufacture their chips in our own factories.
Even if Intel is unable to meet the six to nine month goal, the news highlights the importance Intel attaches to its new business as a chip producer for other companies.
The executive did not mention which companies Intel had talks with, but indicated that manufacturing could take place at its plants in Oregon, Arizona, New Mexico, Israel or Ireland.
The plan is separate from the $ 20 billion investment Intel announced last month to start manufacturing chips for other chip designers.
Gelsinger also met with the Biden administration as part of a White House meeting to discuss the semiconductor shortage.
The president has been contemplating options on how to address the situation since February, telling Gelsinger and other executives that he is pushing Congress to allocate $ 50 billion to research and manufacture of semiconductors.
Intel is one of the last companies in the semiconductor industry to design and build its own chips.
The company said last month: It is opening its factories to outside customers and building factories in the United States and Europe in an attempt to counter the dominance of Asian chip manufacturers, such as TSMC and Samsung Electronics.