August 20, 2021
Semiconductor manufacturers are struggling to keep up with demand, as the want for electronic devices has now peaked.
Glen O’Donnel, research director at Forrester, said that the balance between supply and demand in semiconductors is unlikely to be resolved in the coming months. While there are plans to expand chip production capacity, this will take time, and O’Donnel expects the shortage will linger on for the next two years.
The pandemic can be blamed for this imbalance in the industry.
According to Daniel Goncalves, research manager for Western Europe at IDC, pressure on chip supply will continue to lag behind demand until demand subsides, a major reason why the end remains unknown.
He noted, “Providing components isn’t the problem. The problem is that demand is much stronger than it used to be, so the pace of production is much slower than it should be. This is why it is very hard to predict when this will end.”
Revenue of the global semiconductor industry reached $40 billion, an increase of 13.2% compared to the previous year.
For more information, read the original story in ZDNet.
