Nvidia, Intel, and TSMC warn that chip shortage could extend into 2023
Unprecedented demand is likely to keep global chip supply scarce for the immediate future.
As we rapidly approach the midpoint of 2021, thousands of people are still fighting for a chance to secure a PS5. Thousands of new pickup trucks are sitting in lots unfinished—all for the same reason it remains difficult to get a new console. The ongoing global chip shortage is wreaking havoc on global supply chains and uncertainty is the only thing that is for certain. This week, executives from some of the biggest firms in technology, including Intel, Nvidia, and TSMC, warned that the situation is unlikely to improve for at least another year and possibly into 2023.
What started as an inconvenience for gamers and those in need of new computers for COVID-mandated work-from-home setups has evolved into a more serious problem. It is a problem so severe that President Joe Biden was forced to speak on the situation as the White House began taking steps to mitigate the fallout. While the government's intentions are admirable, expanding domestic and global chip production is an endeavor that takes years of planning and execution.
Intel CEO Pat Gelsinger spoke with the Washington Post about the shortage and explained that his company is working to expand production capacity, but it is not a quick process. “We do believe we have the ability to help,” said Gelsinger. “I think this is a couple of years until you are totally able to address it. It just takes a couple of years to build capacity.”
C.C. Wei, CEO of TSMC, the world’s leading producer of cutting-edge chips, warned investors that the company’s efforts to expand its current production capabilities will not be complete until 2023. In its first-quarter 2022 fiscal outlook, Nvidia warned investors that “We expect demand to continue to exceed supply for much of this year.”
For a deeper dive into the details of the story, we recommend that you give a look to our recent feature covering the ongoing chip famine.
Chris Jarrard posted a new article, Nvidia, Intel, and TSMC warn that chip shortage could extend into 2023