When Will The Chip Shortage End?

There is already a date for the end of the shortage of chips and the rise of prices!

The nonsense that we are experiencing in our sector with the shortage of chips and especially the rise in prices is nothing compared to what other industries are suffering. Fortunately, in general computing with all that this entails, we have always had priority on the part of the main companies, but now a new report and some statements from a senior Intel executive set a deadline to return to normality. 

When will the chip shortage end? The semiconductor market is currently more jittery than the New York Stock Exchange following the Evergrande crash, except that you live here every day for more than a year. Supply and demand are getting closer by the day, multimillion-dollar investments are being made, countries are engaged in a secret battle that few of us are aware of, and now, unexpectedly, there is a deadline for all of this.

The rising and overflowing semiconductor market

We are steadily approaching the end of the year, and the initial studies estimate fairly good figures, as IDC, for example, expects 17.3 percent year-on-year growth. To put that in context, despite the fact that the crisis had already begun, the industry increased by a massive 10.8 percent last year, which was already an impressive result.

This year’s will smash all previous records, owing to the fact that every firm, industry, and even country has their eyes and hands on TSMC, Samsung, and Intel. According to the studies, the rise of these figures is directly driven by the markets for automobiles, laptops, servers, smartphones, and games, which are the primary players in need of a wide range of electronic components and chips.

As a result, despite the fact that some new FABs have been launched, capacity utilisation has reached 100 percent, and it is projected that this will continue when those that are yet to be inaugurated, indicating that demand remains far higher than supply.

Intel offers a concrete prognosis and establishes a date for the end of shortages

Maurits Tichelman is an influential executive at Intel, having spent more than 31 years with the firm. As such, he is a senior member of the industry, and as such, he answered some extremely particular questions. The one that piques our attention is the most significant, as he was asked about Intel’s response to all of this scarcity. 

The response is succinct. Intel’s supply chain is fraught with difficulties. The main issue is a scarcity of substrates. This means that their chips can’t be built, thus they’re left with silicon that can’t be turned into a finished product.

Given the enormous demand in the consumer sector, among other things, maintaining the supply chain has been quite a struggle since last year. He says that Intel has tried to work with all governments and was on the priority list in the majority of countries. This allowed them to not only supply their products to our customers, but also receive the supplies they needed for manufacture.

Further he adds that “We intend to continue working in 2022 to strike a balance in terms of delivering substrates for specific goods. As a result, even in 2022, the supply of certain products will be less than perfect. We will be on the correct road by 2023, and the shortfall will be over.”

It is white and bottled. Supply will match demand in 2023, and it is expected that prices will begin to fall early in order to stabilise that year. At the moment, the most recent rumours indicate that the massive shortage will be resolved by the end of the year, and that the situation will begin to improve by the middle of next year. In any event, the end of the chip scarcity has already been set; all that remains is to fight and wait.

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