The global chip shortage that started in the automotive sector this year is still continuing. It also affected consumer electronics and other fields. Many top companies’ executives, including Intel CEO Pat Kissinger, Nokia CEO Pekka Lundmark, and Ericsson CEO Borje Ekholm, all predict that the global chip shortage will continue for some time.
Simon Segars, CEO of chip architecture provider ARM, also predicts that the chip shortage will continue.
“This isn’t a short-term problem with a short-term solution.”
Simon Segars was at a high-end summit and said that the chip shortage will continue for some time. He said at the meeting that due to delays in chip delivery and increasing global shortages, the current imbalance between supply and demand for chips is the worst he has ever seen. The imbalance between supply and demand will not be completely resolved before Christmas in 2022.
Not Hope That Chip Shortage Will Be Over
In the chip shortage context, the production and sales of many products have been affected. It touched even Apple. Prior to this, we learned that due to a shortage of specific chips, Apple has lowered its iPhone 13 production target for this year, by up to 10 million units.
The shortage of chips affects the production and sales of terminal products. Also, it will inevitably affect consumer purchases. Simon Segars also said at the summit that if users want to buy new products and have already placed orders, it may be difficult to get them at Christmas.
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To somehow manage the situation, the semiconductor industry is currently investing around US$2 billion per week. This ought to eventually lift production by 50%, but that supply will remain tight in the near term.
“Where are we going to be next Christmas? I expect these supply chain constraints to be a little better but it won’t be completely fixed,” Segars said at the Web Summit in Lisbon.
Much earlier Intel issued a similar statement, saying that it may continue for two years or more. However, it wasn’t the first time when the intel CEO Pat Kissinger publicly states that the current global chip shortage will continue for many years. In the mentioned interview, he said that he believes that it will take many years for the chip shortage problem to be completely resolved. The reason is it takes several years to build new capacity.
A month earlier, Pat Kissinger stated that they had set up an in-house chip foundry department. It will be responsible for chip foundry matters. They are also in contact with automotive chip designers. And they are planning to start manufacturing automotive chips within 6 to 9 months.