According to Reuters, STMicroelectronics CEO Jean-Marc Chery said recently that the global chip shortage will continue until the first half of 2023.
"Things will improve in 2022 gradually but won’t go entirely back to normal situation before the first half of 2023," Jean-Marc Chery said.
By "normal situation," Chery said he meant regular chip inventory levels and average delays of about three months to replenish components.
Chery explains that unlike previous demand for computers, the current situation is fueled by “massive orders for components”, which is exacerbated by scalpers and cryptocurrency miners – the latter of which bought up around 700,000 graphics cards in the first quarter of 2021 alone.
Chery pointed out that chip shortages have pushed up prices. The average price of ST chips in 2021 has increased by 5% over a year ago, and it is expected to further increase prices in the second half of 2021 and 2022. ST will only meet 70% of total customer demand this year, but as the company's production capacity expands, this proportion will rise to 85-90% next year.
All Comments (0)