Intel CEO Pat Gelsinger believes that the semiconductor industry will experience chip shortage until 2024. He stated this in an interview to CNBC.

In an interview with TechCheck, Gelsinger said the global chip crunch may drag on due to constrained availability of key manufacturing tools, serving as an obstacle to expanding capacity levels required to meet elevated demand.

“That’s part of the reason that we believe the overall semiconductor shortage will now drift into 2024, from our earlier estimates in 2023, just because the shortages have now hit equipment and some of those factory ramps will be more challenged,” Gelsinger said.

Gelsinger made the statement after the California-based chipmaker offered a fiscal second-quarter forecast that was lighter than Wall Street expected. Its fiscal first-quarter earnings and revenue topped analyst expectations, however. Intel shares were down more than 6% on Friday.

Since Gelsinger took over as CEO in February 2021, Intel has announced a slew of major investments to geographically diversify chip manufacturing. The company is spending heavily to build semiconductor factories, known as fabrication plants, in the U.S. and Europe. Most of the world’s chip manufacturing capacity is now concentrated in Asia.

“We’ve really invested in those equipment relationships, but that will be tempering the build-out of capacity for us and everybody else, but we believe we’re positioned better than the rest of the industry,” Gelsinger added.