It is undeniable that there is a global chip shortage. Last month, Japan has pledged $5.2 billion (roughly 600 billion yen) to support semiconductor makers in an effort to help solve the global chip shortage.
But is it enough? It seems not. In a recent earnings call, Micron CEO Sanjay Mehrotra told investors this was clearly not the case.
“Across the PC industry, demand for DDR5 products significantly exceeds supply due to a shortage of non-memory components that is affecting the ability of memory suppliers to create DDR5 modules. We expect these shortages to decrease through 2022, allowing DDR5 bit shipments to reach significant levels in the second half of the 2022 calender, ”said the CEO.
What does this mean for consumers? Cars are more expensive, computer makers are struggling to meet consumer demand, and many products have been severely delayed like the PlayStation 5, which is still un-orderable a year after its launch, according to Yahoo Finance.
Covid is partially partially to blame. Car makers supposed that people would not want to buy cars during the pandemic & slow down the production that to discover the opposite was true. Covid also forced the slowdown of many production lines like those of chip-makers.
Businesses are trying to do something about crisis. Intel, TSMC & Samsung are investing in new factories, but it will be at least 2 more years until they are operational.
The experts focus on the fact that the deficiency will continue in 2022 and in 2023. Intel CEO Pat Gelsinger said he expects the situation to continue until 2023. “COVID has disrupted supply chains, causing it to become negative. Demand has exploded 20% year over year & disrupted supply chains have created a huge gap & the demand explosion has continued, ”he told to Nikkei.
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