Global chip shortage could continue into 2023 — What this means for you

News
By
published

A new report suggests chip shortages will last till 2023

Intel Iris Xe Max GPU
(Image credit: Intel)

The computing industry, among others, has been dealing with rampant chip shortages due to the coronavirus pandemic, with some predicting the shortages lasting into 2022. A report from Financial Times shared via 9To5Mac predicts shortages will last even longer and reach into 2023. 

Major electronics manufacturer Flex warned of the possibility in the Financial Times report, stating "The forecast from Flex, the world’s third-biggest such manufacturer, is one of the gloomiest yet for a crisis that is forcing car and consumer electronics groups to re-examine their global supply chains."

Lynn Torrel, Flex’s chief procurement and supply chain officer, said the manufacturers it relies on for semiconductors have pushed back their forecasts for when the shortage will end.

“With such strong demand, the expectation is mid to late-2022 depending on the commodity. Some are expecting [shortages to continue] into 2023,” she said.

These statements follow recent warnings given by Dell CEO Michael Dell who stated, "The shortage will probably continue for a few years. Even if chip factories are built all over the world, it takes time." Dell's statements were further backed by Nvidia CFO Colette Kress, who said, "demand continues to exceed supply for much of this year," with chip maker TSMC warning that shortages could last long into 2022.

Due to Covid-19, many manufacturing plants were forced to close for safety reasons or reduce capacity, which caused shortages. Also, the pandemic caused the building of new fabrication plants to stop resulting in major delays in bringing them online. 

As previously reported by 9To5Mac back in April, Apple warned there could be shortages in the future that would impact both iPad and Mac production. Analyst Ben Bajarin stated at the time, "Apple has largely been able to secure all the necessary 5nm chip production it needs. Still, the issue lies in the production of other components." 

Mark Anthony Ramirez
Mark Anthony Ramirez

Mark has spent 20 years headlining comedy shows around the country and made appearances on ABC, MTV, Comedy Central, Howard Stern, Food Network, and Sirius XM Radio. He has written about every topic imaginable, from dating, family, politics, social issues, and tech. He wrote his first tech articles for the now-defunct Dads On Tech 10 years ago, and his passion for combining humor and tech has grown under the tutelage of the Laptop Mag team. His penchant for tearing things down and rebuilding them did not make Mark popular at home, however, when he got his hands on the legendary Commodore 64, his passion for all things tech deepened. These days, when he is not filming, editing footage, tinkering with cameras and laptops, or on stage, he can be found at his desk snacking, writing about everything tech, new jokes, or scripts he dreams of filming.