Market analysts expect the global chip shortage to continue for the next two years until 2023, CNBC reported.
- Forrester Vice President Research Director Glenn O’Donnell expects the shortage to drag out as demand will remain high and supply will remain constrained.
- O’Donnell believes the continued demand will be driven by data centers, along with the growth in cloud computing and cryptocurrency mining.
- Plurimi Investment Managers CIO Patrick Armstrong expects the shortage to last 18 months as chips are now embedded in more goods than ever.
- Armstrong said claims that chip manufacturers could catch up to the demand by June are ambitious.
- Garnet Analyst Alan Priestley sees an improvement in the next six months, but effects are likely to carry on until 2022.
- Priestley said there may be a lag as capacity is increased.
- Credit Suisse Director of Global Economies and Strategy Wenzhe Zhao said little can be done to address the shortage besides adjusting books and more schedules and prices.
- Zhao said production chains have resorted to inventory hoarding as new production capacity is not expected to go online until 2022 or later.