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- The global chip shortage could last until 2023
The global chip shortage could last until 2023
CNBC reports that according to analysts that monitor the industry, semiconductors will be in short supply for some time to come yet.
Glenn O’Donnell, a vice president research director at advisory firm Forrester, believes the shortage could last until 2023.
“Because demand will remain high and supply will remain constrained, we expect this shortage to last through 2022 and into 2023,” he wrote in a blog.
O’Donnell expects demand for PCs, which contain some of the most advanced chips, to “soften a bit” in the coming year but “not a lot.”
Meanwhile, he expects data centers, which are full of computer servers, to buy more chips in the next year after what he describes as a “dismal 2020.”
“Couple that with the unstoppable desire to instrument everything, along with continued growth in cloud computing and cryptocurrency mining, and we see nothing but boom times ahead for chip demand,” said O’Donell.
Meanwhile, Patrick Armstrong, CIO of Plurimi Investment Managers, told that he thinks the chip shortage will last 18 months. “It’s not just autos. It’s phones. It’s the internet of everything. There’s so many goods now that have many more chips than they ever did in the past,” he said. “They’re all internet enabled.”
The car industry has been affected by the global chip shortage more than any other sector.
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