CHIP SHORTAGE NOT LIKELY TO DISAPPEAR UNTIL END OF 2022

Wed 03 November 2021:

The shortfall of computer chips that has hampered automakers will endure until the end of next year, according to the chairman of a key semiconductor designer.

The semiconductor industry is now investing $2 billion each week, which will eventually increase production by 50%, but supply will remain tight in the short term, according to Arm Holdings CEO Simon Segars.

“Where are we going to be next Christmas? I expect this supply chain constraints to be a little better but it won’t be completely fixed,” Segars said at the Web Summit in Lisbon.

“This isn’t a short-term problem with a short-term solution.”

Arm, based in the United Kingdom, is a maker of computer chips that power a wide range of consumer electronics devices. It is currently being purchased by Nvidia from Softbank in a $40 billion deal.

During the coronavirus pandemic, customers increased their purchases of electronic devices, putting a strain on the semiconductor sector. Shortages have resulted from the increasing demand, as well as the disruptions caused by COVID-19 lockdowns.

The auto industry has been particularly hard hit, with shortages expected to block the production of 7.7 million vehicles this year, according to one estimate.

(with agency)

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