Please Be Patient, IBM Boss Confirms Chip Scarcity Still Lasts Until 2022

Semiconductors (Digital Trends)

In an interview with the BBC, IBM president Jim Whitehurst warned that the scarcity of semiconductors could last several years longer. The same statement has been made by Nvidia and Intel, which were first aware of the disruption of the semiconductor chip distribution chain due to COVID-19.

Even as the world begins to receive vaccines, as well as the normal nuances that are starting to be felt again in some countries, the semiconductor industry will still undergo changes. At least for a few years.

"There will be a fairly long gap between when the technology is developed, when it starts mass production, and when the chip starts to launch", Whitehurst explained.

Indeed, IBM recently launched the world's first 2nm chip. Becoming a new standard for the semiconductor industry. It's just that it seems that manufacturers won't be implementing the technology right away.

According to Whitehurst, the industry needs to find ways to reuse and extend the life of the computing technology being developed. Thus, the shortage of semiconductor chips can also be solved.

Semiconductor Demand Continues to Increase

Common narrative, a disconnected supply chain is a major factor in semiconductor scarcity. In fact, it's not the only one. On the other hand, the surge in demand also plays an important role.

The Semiconductor Industry Association found continued market growth. According to association records, revenue in the first quarter of 2021 exceeded the same quarter revenue in 2020. The margin of difference reached 17.8 percent.

Meanwhile, the findings of the International Data Corporation (IDC), the biggest driver of semiconductor demand are computing systems. Then enjoyed by smartphones, VGA cards, game consoles, laptops, to cars.

Apple, which has long secured chip stocks for its products, has not escaped the pressure. Citing a Nikkei Asia report last April, it was revealed that Apple delayed the manufacturing process of MacBook Pro and iPad products due to component shortages.

Samsung also experienced similar problems. In fact, Samsung explained it was a "pretty serious imbalance between supply and demand".

Continuously Improved Chipset Production

Semiconductors now play an important role in a variety of technologies. Starting from laptops, smartphones, game consoles, to electric cars. Inevitably, the condition also has an impact on increasing demand.

In the midst of these conditions, Taiwan Semiconductor Manufacturing Co. leader Mark Liu stated that it has been working to produce as many chips as possible. This step was taken after he learned of the current condition of chip scarcity globally.

"Today up to the next two months, according to our calculations, we can pursue minimum requirements for our customers by the end of June", he explained as quoted from Bloomberg.

Liu predicted that the scarcity of semiconductors could only be overcome by the end of this year or early 2022. Because, there is a long time lag, due to the long and complicated supply chain of chips.

As is known, due to the scarcity of chipsets, a number of computing devices experienced price increases. From laptops, smartphones, and more.

Industry and observers have identified several causes of scarcity. It's just that it still takes a long time for the scarcity to be overcome.