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Chip shortage can hinder production for years

According to executives from Acer and Intel, the global semiconductor shortage will last until at least 2022, impacting most industries that rely on chips for manufacturing.

Acer’s co-COO Tiffany Huang told Guardian Australia that it expects production for Acer – one of the world’s largest laptop designers – to remain hampered until at least the first or second quarter of 2022 as it struggles to find chips. 

Huang said that most days Acer is only able to meet 50 percent of global demand, which is why it has focused its education products rather than gaming products.

“It will remain sluggish until the first quarter or the second quarter of next year,” Huang told The Guardian.

“We have a serious shortage, and it’s not just making sure that every family has a device to use, everyone should have a device for work or for education […] we have last year [s] Millions of educational devices shipped this year simply because we believe that people truly deserve the right to continue to live and learn.

” She said the global chip shortage will affect many companies, especially if semiconductor supplies do not return to normal as the impact of the Covid-19 pandemic on supplies diminishes.

Gartner reiterated Huang’s prediction, stating that The chip shortage will persist until at least the second quarter of 2022 and some devices will rise in price as a result.

This week Intel CEO Pat Gelsinger also told the virtual Computex conference that it could be years before the shortfall is resolved. He said global supply chains were struggling under the “explosive growth of semiconductors” that will require much of the world’s population to adapt to the coronavirus pandemic.

term, it may take a few more years for the ecosystem to address the shortages of foundry capacity, substrates and composites. nenten,” said Gelsinger.

Intel plans to expand its US chip manufacturing business, investing $20 billion in two new plants in Arizona for advanced chip manufacturing, including for customers.

This could help rebalance the semiconductor supply chain; About 75 percent of the global chip production capacity is located in East Asia, with Taiwanese TSMC and South Korean Samsung as the dominant players.

The shortage of semiconductors has been caused by several factors, including the coronavirus temporarily closing facilities or scaling back production, the sudden demand for chips to support remote work and study, and the ongoing trade war between the US and China.

All of this has led to serious supply problems for a range of industries, including automotive, gaming and consumer electronics.

Some auto production lines have been put on hold due to chip shortages, with Ford, Jaguar Land Rover and Ford closing factories and laying off workers, while other automakers are opting to let advanced features such as integrated navigation systems adapt to the shortage.

Last month, Sony warned it may not be able to meet record-breaking demand for its flagship PlayStation 5 console by 2022.

Sony has avoided making predictions about when the deficit will end. Samsung, meanwhile, has said the chip shortage is already affecting production of its televisions and home appliances.

Earlier this year, Nvidia announced plans to reissue some of its older GPUs to partners so they can release new hardware at extremely high market demand, while Qualcomm warned investors that shortages are not only limited to high-end chips, but also “legacy nodes” used to make chips for broad markets.