One of the primary causes of the chip shortage is the global Covid-19 pandemic. It not only reduced chip producers’ capacity by shutting manufacturing facilities during lockdowns or restricting worker levels due to illness.
It also witnessed a huge surge in consumer demand as individuals looked to acquire new technology for themselves and their families as they found themselves working and learning from home.
According to CNBC, Dr. Su stated that chip manufacturers were trying to boost their manufacturing capacity.
It may take, you know, 18 to 24 months to put on a new facility, and in some cases even longer than that!Dr. Lisa Su
Dr. Su stated that “the pandemic has simply raised demand to a new level,” and AMD’s exceptional financial performance shows this. Such demand, along with big new console launches from both Sony and Microsoft, as well as a surge in cryptocurrency mining that requires GPUs, has put enormous strain on supply levels.
If Dr. Su is accurate, and chipmakers will not be able to meet pent-up demand until more production sites are constructed, then the rest of 2021 and early 2022 may still be a terrible time to try to acquire some of these items.
Companies are doing everything they can to deal with the problem, as US President Joe Biden meets with CEOs to discuss chip shortages. The United States produces around 12% of the world’s semiconductors. Gelsinger stated that he lobbied to raise it over 30%.
According to Tech Radar, The CEO of AMD, a company whose processor and graphics card products rely on chips from third-party manufacturing facilities, Dr Su is well situated to remark on the chip shortage’s direction.
So, when she mentioned it at the recent Code Conference in California, and how the first half of 2022 will be “likely tight,” our expectations for an end to the chip shortage were crushed, and we’d soon be able to simply pick up a PS5 or a new AMD or Nvidia GPU were dashed.
Despite the global chip shortage, some tech giants have acquired more profit. If you look at Apple, iPhone Sales Increased by 50% Despite Global Chip Shortage. But on the other hand, We have also seen Samsung suffering badly from the chip shortage. In early 2021 they discontinued their flagship Note Series but after some months, decided to delay the Note Series because of chip shortage.
There’s a serious imbalance of supply and demand in the IT sector globally. It is hard to say the shortage issue has been solved 100%Koh Dong-Jin – CEO Samsung