The global chip shortage looks set to last until 2023, analysts who track the industry say.
See also: Global chip shortage 'reaches critical point'
Today, chips are in everything from PlayStation 5s and toothbrushes to washing machines and alarm clocks. But there aren't enough of them to use – the chip shortage is a multifaceted issue that shows no signs of abating, leading some to call the current crisis "chipageddon."
Glenn O'Donnell, vice president research director at consulting firm Forrester, believes the chip shortage could last until 2023.
"Because demand will remain high and supply will remain limited, we expect this shortage to last through 2022 or into 2023," he said in a statement on a blog.
See also: Global chip shortage 'reaches critical point'
O'Donnell expects demand for computers, which contain some of the most advanced chips, to "slow down a bit" next year, but "not by much.".
Meanwhile, he expects data centers, which are full of computer servers, to buy more chips next year after what he describes as a "dismal 2020.".
“Combine that with the relentless desire to organize everything, along with the continued growth of cloud computing and cryptocurrency mining, and you can see why demand for the chips will continue to grow,” O’Donell said.
See also: Mitsubishi to reduce production due to chip shortage
Meanwhile, Patrick Armstrong, CIO of Plurimi Investment Managers, told CNBC’s “Street Signs Europe” last week that he believes the chip shortage will last 18 months. “It’s not just cars. It’s phones. It’s the internet of everything. There are so many products now that have many more chips than ever before,” he said. “They’re all connected to the internet.”
Meanwhile, the CEO of German chipmaker Infineon said last Tuesday that the semiconductor industry is in uncontrolled territory.
Reinhard Ploss said last week on CNBC's "Street Signs Europe" that it's "very clear that it will take time" until supply and demand balance out.
“I think two years is a long time, but we will definitely see it get to 2022,” he said. “I think additional capacity will come… I expect a more balanced situation in the next calendar year.”
See also: Xiaomi prices may increase due to chip shortage
Wenzhe Zhao, director of global economics and strategy at Credit Suisse, said last Wednesday that recent chip shortages have encouraged inventory hoarding along chip production chains, widening the gap between rising demand and stagnant supply.
Zhao said new semiconductor production capacity will not be eliminated until 2022 or later, adding that little can be done to address the current shortage.
Information source: cnbc.com
