How long is the chip shortage supposed to last?

Opinions on when the shortage will end vary. The CEO of chipmaker STMicro estimated that the shortage will end by early 2023. The CEO of automaker Stellantis said that the shortage “is going to drag into ’22, easy.” Intel CEO Patrick Gelsinger said the shortage could last two more years.

Will the chip shortage get worse?

Earlier this year, the chip shortage seemed like it might ease sometime in 2022. Now, that forecast appears to have been optimistic. “The shortages are going to continue indefinitely,” Brandon Kulik, head of Deloitte’s semiconductor industry practice, told Ars.

What caused the semiconductor shortage?

The surge in sales for electronic devices during the pandemic created a huge demand for semiconductors. But COVID-19 is not the only factor behind the shortage. The tense relationship between the United States and China is also a factor, since many US companies do business with Chinese companies.

Should the government help solve the semiconductor shortage?

A June White House report on supply chain vulnerabilities identified semiconductors as one of four priority areas where the U.S. must develop new domestic capacity. But that report acknowledged that “the private sector must take the lead in addressing the shortage” and identified the government’s role as one of assisting.

Will the auto chip shortage affect manufacturing all the way to Christmas?

Analysts now worry that the auto chip shortage will slosh back to consumer electronics, affecting manufacturing all the way to Christmas. “Never seen anything like it,” tweeted Tesla CEO Elon Musk. Microchips, long revered as the brains of modern society, have become its biggest headache.

Does the world really need semiconductors?

The world needs us to continue to make semiconductors.’” It was not an understatement. Chips powered the pandemic response—webcams, laptops, COVID-19 testing machines. In New York City alone, the department of education purchased 350,000 iPads. The only thing it seemed no one needed was a new car, at least at first.

Will the chip shortage affect iPhone availability this fall?

Apple ( AAPL) has said chip shortages could affect the availability of iPhones this fall. The shortages are depressing economic output and forcing economists to lower their growth expectations for the rest of 2021. They’re also pushing prices up, contributing to inflation that now stands at 5.4\%.