Why the global chip shortage won’t end anytime soon

The news of the global chip shortage has been so far-reaching this year that it has become a meme. “I’m sorry I forgot to do the dishes, there is a shortage of chips around the world.” But like many jokes online, there is a grain of truth in it. The semiconductor chip crisis is real and is having a serious impact on our lives. Cars are more expensive and harder to build. Computer manufacturers are rushing to keep up with the insatiable consumer demand for remote working and school equipment. and countless products have was delayed, with release dates like dominoes being postponed throughout 2021 and into the years to come.

While it’s a problem that affects virtually everyone, the lack of chips has been particularly painful for gamers. A year after the PlayStation 5 launched, it’s still virtually impossible to order one. (At least not without paying an exorbitant premium or chasing stock bots like a machine.) And PC gamers who itch to upgrade their GPUs, who are already used to dwindling hardware supplies and skyrocketing prices, will too Cards have to live a little longer in their old video.

Forrester Analytics’ Glenn O’Donnell explains to Engadget that the problem is primarily a simple supply and demand problem. There are several reasons for this: Automakers cut their hardware orders at the start of the pandemic, on the assumption that consumers would not be interested in buying new vehicles. It turned out to be the opposite – which has overwhelming demand Used car prices have increased significantly. Chip makers have also been forced to keep pace with increasing demand for PCs, game consoles and a wide range of devices while grappling with production slowdowns amid COVID lockdowns and other precautionary measures.

Aaron Souppouris / Engadget

“I would like to say that things have gotten better, but in fact they have gotten a little bit worse and I’m not surprised,” O’Donnell said in a recent interview with Engadget. In April he argued that the the global chip shortage would persist in 2022 and into the year 2023. Now he is even more convinced that we won’t see much relief until then. While future chip fabs from Intel, TSMC and Samsung could increase shipments, it will be at least two more years for these companies to lay the groundwork to get them up and running. Intel began building his two chip factories in Arizona in September, and they are not expected to be operational until 2024.

Basically, get used to the chip shortage as we will suffer from it for a while. In one (n Interview with Nikkei last week, Intel CEO Pat Gelsinger also confirmed that he expects the situation to persist through 2023 Packaging Lines. “Demand skyrocketed to 20 percent year-over-year and disrupted supply chains created a huge void … and that skyrocketing demand has continued.”

NVIDIA CEO Jensen Huang echoed this opinion in a recent Yahoo Finance interview, he says, there is no such thing as a “silver bullet” when it comes to dealing with the supply chain. Huang also noted that NVIDIA’s own supplier group is multi-source and diverse, so the shortage shouldn’t dramatically affect new product development. But NVIDIA was struggling to keep up with player demands even before the pandemic. Scalpers and cryptominers typically bought up all available inventory, so the average consumer has a limited amount of inventory from stores and resellers.

While Huang expects production to ramp up again in 2023, he also believes the pandemic-fueled push to buy more computers and gaming hardware will persist. “I think these are permanent conditions and we will see new computers being built for quite a while,” he told Yahoo. “People build home offices and you could see all the implications.”

In the US there is a glimmer of hope that the Innovation and Competition Act (USICA) will be $ 52 billion. But after the Senate passed earlier this year, legislation in the House of Representatives has stalled wherever Republican members said they would block USICA. The bill also provides $ 190 billion to improve American semiconductor research and development, all in hopes of becoming more competitive with China, which has increased its chip production dramatically over the past decade.

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