26 Apr 2021 -

Global chip shortage may run into 2023, says report

Major chip-makers such as TSMC, Nvidia, and Intel have said that the ongoing chip shortage will continue till 2022 and might even extend to 2023.

New Intel Chief Executive Pat Gelsinger said that supply constraints, and the “immense” investment needed to meet demand, mean that the chip shortages affecting the automobile industry and other sectors are likely to last two more years.

It “will take a while until people can put more capacity in the ground,” he explained, as Intel announced first-quarter results that beat sales and earnings expectations, but warned its profit margin would shrink this year.

Gelsinger said, “I think this is a couple of years until you are totally able to address it.”

The Taiwanese Semiconductor Manufacturing Co (TSMC), which is the world’s largest chip manufacturing company, stated that the severity of the current chip shortage will likely reduce in the coming days. However, the overall shortage of silicon chipsets will continue this year and may even extend to the next.

The Nvidia CEO Colette Kress reportedly said that Nvidia is hoping to get “sufficient supply to support sequential growth beyond Q1 [2022]”. However, it will not be able to catch up with the increasing demand.

So, we can expect the current chip shortage to continue for at least another year before stabilising, but further demand increases may push this timeline further.

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

Either through the hundreds of manufacturers we purchase directly from, or the international network of component supply-partners offering full product traceability, Astute Safe-Supply, run by sourcing experts and offers a deeper insight into the global components markets.

With real-time access to the latest listings and prices cultivated through several decades of close supplier partnerships, we are able to spot price disparities and leverage product price variances to deliver cost-effective solutions to customers, whilst ensuring a quality, risk-free supply.

For more help with looking at supply chain options, contact Astute Electronics here

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