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Chip companies: chip shortage will not improve until the second half of 2022

SemiMediaEdit
January 7, 2022

According to Bloomberg, Nvidia's CFO Colette Kress stated at the J.P. Morgan Tech/Auto Conference on January 5 that the company expects its supply to improve in the second half of 2022.

Executives from other chip companies also expressed their expectations of when chip supply and demand might reach a certain balance. Most companies stated that they will not see any improvement before mid-2022, and even many companies also stated that they may not improve even then.

Like other chip manufacturers that outsource production, Nvidia has been struggling to ensure sufficient supply to meet demand.

GlobalFoundries CEO Tom Caulfield said at the conference that it is hard to imagine not discussing supply issues in the next two years. He believes that there will be no relief in 2022.

Hassane el-koury, CEO of onsemi, said that by the end of this year, demand will continue to exceed supply.

Analog Devices' CFO Prashanth Mahendra-Rajah said that the growing orders will consume all supplies before the third fiscal quarter ends in July. It is expected that the fourth quarter will significantly increase the supply output.

The report pointed out that almost all chip company executives believe that there are no signs of hoarding chips that may lead to overstocking and subsequent collapse of demand.

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