TSMC, which supplies chips for AMD, Intel and Nvidia, has warned that the global components shortage will likely continue into 2022.
The Taiwanese semiconductor foundry, which is allegedly planning to hike the price of its chips as a result of the ongoing shortage, said during a recent conference call that it expects it continue to see high-levels of demand - which it will unlikely be able to meet until 2023.
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“We see the demand continue to be high,” commented TSMC CEO C.C. Wei. “In 2023, I hope we can offer more capacity to support our customers. At that time, we’ll start to see the supply chain tightness release a little bit.
“We have acquired land and equipment and started the construction of new facilities. We are hiring thousands of employees and expanding our capacity at multiple sites,” he added.
TSMC does have good news for its automative clients, as it expects chip supply to improve in the next quarter. However, this is likely a sign that the CPU and GPU shortage affecting the likes of AMD and Nvidia is unlikely to ease up anytime soon.
Wei’s comments echo predictions made by Intel CEO Pat Gelsinger earlier this week, who warned that it could take a few years to address the shortage, according to The Washington Post (opens in new tab).
"Overall demand remains very strong and continues to exceed supply while our channel inventories remain quite lean," said Colette Kress, CFO of Nvidia during the company’s annual investors day, despite previously suggesting that stock levels would improve by May."
“We expect demand to continue to exceed supply for much of this year. We believe we will have sufficient supply to support sequential growth beyond Q1."
Via: TechSpot (opens in new tab)