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May 13, 2021: According to analysts that monitor the industry, semiconductors will be in short supply for some time to come yet. Chip is in everything from PlayStation 5s and toothbrushes to washing machines and alarm clocks in the present life. But there’s not enough to go around. It’s a multifaceted issue indicate that no signs of abating, leading some to call the current crisis “Chipageddon.”
Glenn O’Donnell, a vice president of research director at advisory firm Forrester, believes the shortage could last around 2023.
“Because demand will be high and supply will remain constrained, we expect this shortage to last from 2022 and into 2023,” he wrote in a blog. O’Donnell expects demand for PCs, which contain the most advanced chips, to “soften a bit” in the future but “not a lot.”
Meanwhile, he expects data centers full of computer servers to buy more chips in the future years after describing it as “dismal 2020.”
“Couple that with the unstoppable desire to instrument everything, along with continued growth in cloud computing and cryptocurrency mining,” said O’Donnell.
The world’s largest chip manufacturer, Taiwan Semiconductor Manufacturing Company, said that it would catch up with automotive demand by June. Armstrong believes that it is ambitious. “It shouldn’t go longer,” he said.
“The industry is putting more capacity in place, but it will take time.” Indeed, in March, Intel announced that it would spend $20 billion on two new chip factories in Arizona. Intel has also said it could build a plant in Europe if it gets public funding.
“That stuff is going take two or three years before we start to see that,” Priestley said. “But that’s looking to meet future demand.”
However, last Tuesday, the chief executive of German chipmaker Infineon said that the semiconductor industry is in unchartered territory.
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