While general things such as backpacks, glasses, and even clothes continue to become “smart”, the demand for silicon chips has reached its peak in recent days. As a result, global semiconductor manufacturers are facing one of the worst chip shortages in the history of chip manufacturing. Now, as per recent reports, major chip-makers such as TSMC, Nvidia, and Intel have said that the ongoing chip shortage will continue till 2022 and might even extend to 2023.
Now, if you are unaware of what I am talking about, let me give you a quick brief. As more and more things have started becoming, what we call “smart”, the demand for system-on-chips has been exceeding the supplies from manufacturers. Due to this, many of the companies are not able to purchase as many silicon chips as they need because of low supply. It is affecting the smartphone industry too as Samsung, following earlier reports, has already announced that it will not launch the Galaxy Note series this year.
Excess Demand, Less Supply
So, as per reports, in a recent call with industry analysts, the Taiwanese Semiconductor Manufacturing Co (TSMC), which is the world’s largest chip manufacturing company, stated that the severity of the current chip shortage will likely reduce in the coming days. However, the overall shortage of silicon chipsets will continue this year and may even extend to the next.
Situation to Become Stable in Two Years?
The Nvidia CEO Colette Kress reportedly said that Nvidia is hoping to get “sufficient supply to support sequential growth beyond Q1 [2022]”. However, it will not be able to catch up with the increasing demand.
