the chip shortage will last for years

the chip shortage will last for years
the chip shortage will last for years

Unless you live in a cave, you probably should know that many industries, including automotive and electronics, are facing a semiconductor shortage. And unfortunately, this situation could last for several years. In any case, this is what Pat Gelsinger, the boss of Intel, recently indicated during an intervention at the Computex trade fair.

As reported by Reuters, the CEO of Intel explained that teleworking and distance learning has caused an “explosive semiconductor growth cycle”, which is causing tensions in the supply chain. “But while the industry has taken steps to address the short-term constraints, it could still take a few years for the ecosystem to address the shortages of foundry capacity, substrates and components.”, he said.

In April, he had already mentioned this situation. And in the face of this problem, Intel has already announced a $ 20 billion plan to increase its chip manufacturing capabilities.

Computer and smartphone prices could rise

In any case, this shortage could cause many players to increase the prices of their products in order to offset the additional costs caused by the shortage of chips. According to an article by Zdnet, Gianfranco Lanci, chief operating officer of Lenovo, for example said: “Prices are slowly rising. And in order to maintain the profitability we need, we continue to monitor prices. We want to be competitive of course, but the prices are slowly rising. I think we will continue to increase over the next 3-4 quarters due to the component cost trend. “

Other computer makers are said to have similar plans. And in the smartphone market, price increases are also possible. Xiaomi, which evokes an extreme shortage, had indicated that it could also review the prices of certain products.

“To be honest, we will do our best to offer consumers the best possible price. But sometimes we may have to pass some of the increased costs on to the consumer in different cases ”, said the president of Xiaomi during a teleconference in March.

To solve this problem, TSMC, one of the main founders, has already announced a $ 100 billion plan to increase production capacity. “TSMC plans to invest $ 100 billion over the next three years to increase its capacity to support the manufacturing and R&D of advanced semiconductor technologies.”, the company said in a statement relayed by Bloomberg in April. “TSMC works closely with our customers to meet their needs in a sustainable manner. “

 
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