AI Eye Podcast - GBT Technologies CTO (OTCPINK: $GTCH) Discusses Global Microchip Shortage and Responses from Sector
Stocks discussed: (OTCPINK: $GTCH) (NasdaqGS: $INTC) (NasdaqGS: $TSLA) (OTC: $CTTAY)
Vancouver, Kelowna, Delta, BC - January 27, 2022 (Investorideas.com Newswire) Investorideas.com (www.investorideas.com), a global investor news source covering Artificial Intelligence (AI) brings you today's edition of The AI Eye featuring an exclusive interview with technology company, GBT Technologies Inc. (OTCPINK:GTCH), discussing the global microchip shortage.
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AI Eye Podcast - GBT Technologies Inc. CTO: (OTCPINK: $GTCH) Discusses Global Microchip Shortage
With the ongoing global supply shortage of microchips impacting sectors ranging from automotive to mobile phones and more, companies are finding new strategies to adapt, including taking on chip manufacturing and design innovation.
One firm that falls into the latter category is GBT Technologies Inc. (OTC PINK:GTCH), an early stage technology developer in (IoT), and Artificial Intelligence (AI) Enabled Mobile Technology Platforms, and also the creator of a 3D, multiplanar, integrated circuits (IC) design and manufacturing technology. GBT's CTO, Danny Rittman recently spoke to Investorideas.com about the state of the integrated circuit shortage and GBT's own aforementioned chip IP. Regarding the supply shortage, Rittman said it won't be fixed any time soon, but with the easing of COVID-19 regulations - largely attributed as the main driver of the shortage - things will begin to see improvement.
"I do predict it will take some time," Rittman said. "I hope, as we all do, that in the next year or so we'll start to see things get back on track, especially with COVID restrictions being lessened. It seems like the world is deciding that we need to go back to normality with COVID or without COVID."
The following excerpt from a Bloomberg piece on the subject outlines the widespread impact of COVID-19 on the market:
Uncertainties caused by the pandemic also led to sharp swings in orders last year , which in turn muddied the waters for chipmakers trying to match capacity with demand. That's why carmakers have had to halt production in 2021 and why Playstations and Xboxes are getting harder to find in stores.
Rittman talked about the increasing trend for firms to design their own chips, as a means to maintain exclusivity on their intellectual property (IP).
"Companies today tend to try to keep their IP in house, so it's much better to design your own chip and outsource less," Rittman said. "The microchips of today are getting more proprietary, and IP is often kept confidential because companies don't want their IP to be duplicated or stolen."
"Of course, on a general basis companies will sometimes want to just buy to shorten the design time. So they'll definitely continue to buy a USB unit or HDMI unit [for instance] to plug and play and shorten the design. But I do see that proprietary design parts will probably from now on be more confidential and done in house."
But while many companies take on the responsibility of chip design, the actual manufacturing of chips takes place in a handful of major foundries located mainly in Taiwan and South Korea. Recently, chip making giant Intel Corporation (NasdaqGS:INTC) announced that it will invest more than $20 billion in the construction of two new leading-edge chip factories in Ohio in a bid to "establish a new epicenter for advanced chipmaking in the Midwest." Pat Gelsinger, CEO of Intel, commented:
"Today's investment marks another significant way Intel is leading the effort to restore U.S. semiconductor manufacturing leadership. Intel's actions will help build a more resilient supply chain and ensure reliable access to advanced semiconductors for years to come. Intel is bringing leading capability and capacity back to the United States to strengthen the global semiconductor industry. These factories will create a new epicenter for advanced chipmaking in the U.S. that will bolster Intel's domestic lab-to-fab pipeline and strengthen Ohio's leadership in research and high tech."
Tesla (NasdaqGS:TSLA) notably withstood difficulties imposed by chip shortages that plagued its automotive competitors in the last year. According to Reuters, the company's "ability to design components in-house," gave it "agility in making tweaks to parts and coping with supply chain issues that hit other automakers much harder." This included giving customers the option to forgo certain parts, such as Bluetooth chips and USB ports, and the removal of some features including radar sensors and lumbar support for front passenger seats, which streamlined production. With regard to chips in particular, a Tesla insider told Reuters:
"We design circuit boards by ourselves, which allow us to modify their design quickly to accommodate alternative chips like powerchips."
Gilles Mabire, the CEO of German automotive parts firm Continental AG (OTC:CTTAY), told trade publication Automobilwoche that his company does not plan to make its own chips, but "plans to work more closely with its suppliers and customers and change the chip design so that it can be altered more quickly if necessary." Regarding the chip shortage, Mabire said:
"You can't solve that with in-house manufacturing in a single area. You need specialists for that, and the automotive sector alone is simply too small for this."
Mabire went on to opine that reducing the amount of semiconductors in vehicles was not ultimately a viable solution:
"If we look into the future, the switch to central computers may indeed reduce the number of processors and chipsets. But at the same time, complexity and performance levels increase dramatically. So, I find it hard to imagine that we will get by with fewer semiconductors."
Another response to current and possibly future chip shortages might be to simply make more efficient chips. GBT Technologies Inc. recently announced that it filed a continuation patent application for its 3D, multiplanar, integrated circuits (IC) design and manufacturing technology. This 3D microchip design utilizes a multi-dimensional, multi-planar IC structure that may potentially be used in IC fabrication. The object of the design is to facilitate an increase in memory size capacity, speed, performance, and processing power.
"The advantage of our new architecture is its capability of reducing the consumption of power," Rittman said. "So it consumes less power and gives more real estate on the silicon, connectivity is actually shorter and therefore faster and the performance is faster."
Rittman said that although it's more complex design asks more from manufacturers, the chip's benefits will be evident.
"It will require manufacturers to introduce new machinery to produce it, but this is definitely the future because we've kind of reached the limit regarding microchips' silicon yield and real estate (the pure area on the silicon)," he said.
Rittman also explained the importance of securing the chip's continuation patent application.
"Since we see this patent as one of our major IPs in this domain, we're going to be continually adding to it and filing more patents to protect its concept," he said.
Sam Mowers, Investorideas.com
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