Global chip shortage could last until 2023

According to analysts who follow the industry, semiconductors will be in short supply in the near future.

Today, chips are in everything from PlayStation 5s and toothbrushes to washing machines and alarm clocks, and chip shortages have led some to call the current crisis “chipageddon” — chip shortages computers globally. Glenn O’Donnell, vice president of research at consulting firm Forrester, believes chip shortages could last until 2023. “As demand will remain high and supply will remain constrained, we anticipate this shortfall to last through 2022 and into 2023,” he wrote on a blog. O’Donnell expects PC demand to “slightly drop” next year, but “not much.” “Combine that with the desire to digitize everything with the continued growth in cloud computing and crypto mining, and we see nothing but a short burst of chip demand,” O. ‘ said Donnell. Meanwhile, Patrick Armstrong, CEO of Plurimi Investment Managers, said last week that the chip shortage will last 18 months. “It’s not just cars. That’s the phone. It is the internet of things (IoT). There are more chip-based gadgets now than ever before. All of them are internet enabled.” The car industry has been affected by the global chip shortage more than any other sector. The world’s largest chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC) said earlier this month that it thinks its production will be able to catch up with auto demand by June. , Armstrong believed it was an ambitious plan. “Ford, BMW, Volkswagen all emphasized that there were capacity bottlenecks and they couldn’t get the chips needed to make the new cars,” O’Donell said. In a separate development, global research and consulting firm Gartner said last week that chip shortages will persist through 2021 and that the shortage affects all chip types and chip prices. growing. Gartner analyst Alan Priestley said the situation could improve for some sectors over the next six months, but there could be a “side effect” in 2022. In March, Intel announced plans to spend $20 billion on two new chip factories in Arizona. Intel also said it could build a factory in Europe if funding is arranged. “Those plans will take two or three years before we start to see that. But that’s really looking forward to meeting future demand,” said analyst Priestley. Wenzhe Zhao, director of global economics and strategy at Credit Suisse said in a note last week that recent chip shortages have encouraged inventory hoarding along the chip production chain, widening the gap. between expanding demand and stagnant supply. Mr. Zhao said that new semiconductor production capacity will not take place until 2022 or later, and the problem of solving the current shortage besides adjusting the order book, production schedule and price is very difficult.