Finally, we could see that the global chip shortage would come to an end next year. That’s according to AMD CEO Lisa Su (via CNBC), who said the situation will likely improve in the second half of 2022.
Su attended the Code Conference in California on Monday and spoke about how challenging it is for chipmakers to meet semiconductor demand after having seen production hit by COVID-19. “The pandemic has just taken demand to a new level,” he said. However, manufacturers hope to make up for last year’s reduced supply as new manufacturing plants open, which will likely result in more chips being produced in the coming months. .
Su said the chip industry “has always been through cycles of ups and downs, where demand has outstripped supply,” although the AMD CEO also noted that “this time, it’s different.” Of course, Su does not expect this change to happen instantly.
According to Su, the situation will steadily improve as it will take time for manufacturing capacity to return to normal. “It can take, you know, 18 to 24 months to install a new plant, and in some cases even longer than that,” he explained.
But it seems that the situation may get worse before it gets better, as Su had pointed out that the first half of 2022 will be “probably difficult”. This is something we’ve heard before with a chip shortage indicating that buying a PS5 or Xbox Series X probably won’t be any easier before 2023, although Su’s forecast might be a bit more hopeful than previous reports.
In the past two years, the global chip shortage has drastically affected the chip manufacturing industry, resulting in reduced production of desirable technology such as the PS5 and Xbox Series X consoles as well as major graphics cards such as the Nvidia GeForce RTX 3080. And that shortage has resulted in inflated prices for such technology, as people desperately seek Xbox Series X restocks and PS5 restocks, with resellers grabbing consoles and selling them at exorbitant prices.
The chip shortage has hit nearly every tech maker. In fact, we recently reported that even Apple products, which are already expensive, could become even more expensive as a result of global chip shortages and rising supplier prices, although that hasn’t happened with the iPhone 13.
It is difficult to predict if it will all come to an end soon, yet Su’s words give us hope that we will not have to wait for years.
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