Chip Shortage And Higher Prices Set to Continue

October 4, 2021

The situation around chip shortages and higher prices will not go away.

With a variety of ongoing challenges, even with signs may ease from 2022 onwards, the shortage will not stop growing, thanks to many factors. The pandemic, among other issues such as supply-side problems, rising logistics prices and the pure demand for chips have caused hold-ups.

While Gartner’s forecast shows a 27% increase in the semiconductor industry, Ben Lee, senior analyst at Gartner, explained that the expected easing in 2022 will not lead to a fall in absolute prices, but will help to slow and increase the growth rate.

He continued: “In terms of the chip shortage, [prices will be] not as high before … or flat, or slightly decreasing. So far we don’t see that any sign that we’re going to see [a] crash. The whole is getting up, the price, not only semiconductor but also for everything. Logistic and transportation fee, or the crude oil fee … it’s a kind of inflation.”

For more information, read the original story in ZDNet.

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TND News Desk

Staff writer for Tech Newsday.
Picture of TND News Desk

TND News Desk

Staff writer for Tech Newsday.

Jim Love

Jim is an author and podcast host with over 40 years in technology.

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