Global Chip Shortage to last until second half of 2023, says CEO of European chipmaker
By Stuart Thomas on August 2nd, 2021 at 04:30pm - original article from game-debate

This past year has been pretty tough on PC gamers, as a shortage of electronic chips has meant little PC hardware has gone to actual gamers, whereas most of it was being snatched up by scalpers and cryptocurrency miners, resulting in inflated prices and even more limited supply on an already-limited supply chain.

Unfortunately, according to a big European chipmaker known as STMicroelectronics, we won’t see the current global chip shortage start to ease until the second half of 2023. We will see improvements throughout 2022, but only by a small amount. The real big change will start around halfway of 2023:

Things will improve in 2022 gradually, but we will return to a normal situation,” said Jean-Marc Chery, President and CEO of STMicroelectronics. However, Chery soon added that the return to the norm will not happen “before the first half of 2023.

The CEO joins the likes of IBM and TSMC, who also previously stated that the global chip shortage could last until late 2022 or early 2023, and these are some of the biggest names in electronics manufacturing.

Chery revealed how STMicroelectronics has only be able to meet 70% of its demand from customers this year, and that is projected to increase to 85-90% in 2022, hence the projection that the global chip shortage won't recover until the second half of 2023.

Chery also reiterated how serious this issue is, stating that "It's not like in the past, when everyone was waiting for Microsoft to release a new operating system that would drive demand for many more computers," he said. "What we have is global shift ... with massive orders for components."

Of course, more demand means higher prices, as we have seen with graphics cards throughout the year. Chery mentioned how the average price of their chips had increased by 5% since the same time last year, and they expect further price increases going into 2022.

It isn’t the end of the world for PC hardware though, as the global chip shortage is mostly affecting the big names in the electronics business, namely Apple and Volkswagen. Nvidia and AMD are doing their best to improve supply, with availability increasing every quarter. So it’s not like we’ll be in dire straits until 2023, but don’t expect everything to go back to exactly the way it was pre-pandemic until then.

What do you think? Have you been trying to get new PC hardware this year? Were you successful? What is hardware availability/prices like in your region at the moment compared to a few months ago? Let us know!