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Manufacturer warns chip shortages could last into 2023

By Cookie Monster - on 8 Jun 2021, 12:00am

Manufacturer warns chip shortages could last into 2023

Image source: 9to5Mac

Contract manufacturing company Flex issued a gloomy forecast for the global chip industry.

Lynn Torrel, Flex's chief procurement and supply chain officer, told The Financial Times that some manufacturers have pushed back their forecasts on when the global chip shortage will end. The strong demand for chips is expected to last till mid to late-2022 and some manufacturers believe the global shortage may continue into 2023.

The resurgence of Covid-19 in some countries has forced some fabrication plants to close or lower capacity for a period of time. This has caused further delays for chip manufacturing. The global chip shortage has affected a wide range of industries such as automobiles, gaming consoles and smartphones. 

GPUs and routers are also affected with some companies seeing a delay of more than a year. Apple confirmed that there would be supply constraints for the iPad and Mac in the second half of the year.

Samsung confirmed "a serious imbalance in supply and demand of chips in the IT sector globally", which caused the company to consider skipping the Galaxy Note this year. Qualcomm is reportedly struggling to meet demand for its chipsets.

Foxconn CEO Young Liu shared that his company will not be able to fulfil some orders this year and expects the shortage to last till Q2 2022. TSMC, the world's biggest semiconductor foundry, warns the global chip shortage could continue through 2022. In collaboration with the Japanese government and 20 Japanese companies, TSMC will lead a massive project to invest in chip manufacturing technology to address the chip shortage.

Source: The Financial Times via 9to5Mac

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