Intel in talks to make chips for automakers in 6-9 months

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In a report by Reuters, Intel’s CEO said on Monday that the company is in talks to start making chips for automakers, to offset the shortage, which has slowed down the automotive industry considerably.

Chief Executive Officer, Pat Gelsinger, said that Intel is talking to companies that design automotive chips, about manufacturing them inside the company’s factories. The goal is to produce the much-needed chips within six to nine months. Gelsinger met with White House officials earlier on Monday, to talk about the semiconductor supply chain.

Intel’s plan

Intel is one of a small number of companies in the semiconductor industry that designs and produces its own chips. The company said in March that it would open its factories up to outside customers and build others in the US and Europe, to counter Asian dominance in the market.

Taiwan Semiconductor Manufacturing and Samsung are two of the biggest chipmakers from Asia, that Intel would be competing with.

Gelsinger said that he told White House officials during the meeting that Intel will open its doors to auto chip makers, to help with the global shortage which has disrupted General Motors and Ford assembly lines.

A realistic plan is in motion

The hope, as the CEO puts it, is that Intel can alleviate some of these problems since starting from scratch can take 3-4 years for companies that want to ramp up production. Gelsinger says that the six-month period Intel’s factories will take to make the chips is a much better option.

Already, the company has begun engagements with some of the crucial component suppliers. The CEO did not name the components suppliers but said that the work will take place in Intel factories located in Ireland, Israel, Arizona, New Mexico, and Oregon.