As the ongoing COVID-19 pandemic continues to put strain on the semiconductor industry, many manufacturers are still experiencing extremely high demanding that is exceeding supply at an alarming rate. Nvidia and AMD remained hopeful that stock would get better soon, but it seems like issues may persist until well into 2022 as global chip shortages put even more strain on manufacturers.
According to a new report by industry analysts, manufacturers are currently up to 30% behind on demand. That may not seem like much, but the analysts reckon it could take nearly a year for supply to meet demand, and even then will take another 3-6 months before manufacturers like Nvidia, AMD, and Intel to replenish all their stock levels back to a normal amount.
“We believe semi companies are shipping 10% to 30% below current demand levels and it will take at least 3-4 quarters for supply to catch up with demand and then another 1-2 quarters for inventories at customers/distribution channels to be replenished back to normal levels,” said an analyst at J.P.Morgan, Harlan Sur.
Another analyst warned that these chip shortages will only get worse before they get better, with lead times from manufacturers (the amount of time between placing an order and actually receiving the product) getting close to a “danger zone” of more than 14 weeks in Spring.
It is important to note that this is not specific to the PC hardware industry, as semiconductors provide chips to all sorts of companies across varying different industries: “Unless we have a major economic meltdown, which is obviously possible, one of the things that’s happening right now is that almost anything you buy is going to have a chip in it. You can’t buy a dumb product,” said Maribel Lopez, a Principal Analyst at Lopez Research.
So it’s very possible that these problems won’t affect the PC hardware industry as significantly, and Nvidia and AMD could absolutely be right in predicting stock to get better soon: Nvidia said by the end of April, whilst AMD predicted by the second half of the year. Then again, they could be oversimplifying the situation to make it sound more hopeful to customers.
Nvidia stated that they believe stock for the recently released RTX 3060 would be a lot better than before, but even then the GPU was still sold out in minutes worldwide. Then again, we have seen Ryzen 5000 stock get slightly better as scalper prices started to decrease, but admittedly they are much less in demand compared to the new generation of graphics cards.
Of course, increased issues with stock will mean raised MSRP from retailers, which will also result in more scalpers selling at a higher premium as no one is able to actually buy them. Hopefully that won’t be the case, but don’t be surprised if prices surge once again in the coming months.
What do you think? How do you feel about this report? Does it sound about right? Do you think stock will only get better in 2022? Are you looking to get any new PC hardware? Have you already bought some? And how long did it take for it to arrive? Let us know!