The semiconductor crisis could last until 2023

TSMC: Semiconductor crisis to continue until the end of 2023 - TechnoSports

The global shortage of chips affecting industries around the world could extend by two more years, according to IBM President.

The global shortage of chips affecting industries around the world could extend by two more years, IBM President said, Jim Whitehurst, to the BBC.

The manager explained that, according to the latest estimates, the automotive sector will lose $110billion this year due to the lack of these components. At the same time, the tech industry is struggling to keep up with the demand caused by the reopening of the world economy, as the Guardian explains.

Whitehurst noted that there is now a large gap between the time a technology is developed, a manufacturing plant is built and the chips come out. Thus, the PRESIDENT of IBM noted that he predicts a period of a couple more years before"we get enough capacity to alleviate aspects of scarcity."

It also stated that the industry might have to consider making several changes in the way they use microchips, considering the reuse, extension of the lifespan of certain technologies, or accelerating investment in manufacturing plants to gain more capacity faster.

Semiconductor shortages began in 2020 with the closure of some factories due to the health crisis. Afterward, the production delay was aggravated by the growing demand for such components due to the rise of devices such as laptops or smartphones due to confinement.

One of the sectors most affected has been and is automotive, as manufacturers canceled orders when factory activity was suspended and have now been overtaken by the demand that has recovered faster than expected.

According to data from consultancy AlixPartners collected by The Guardian, the crisis will affect the production of 3.9 million vehicles and the cost to the industry will rise to $110 billion compared to $61 billion originally expected.

Added to this is the fact that the loss of production has raised prices. According to data from the same medium, about a third of the 4.2% increase in U.S. inflation this week is related to the increased cost of cars and trucks.

This article was published in Business Insider Spain by Sandra ViƱas.

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