Intel, TSMC say chip shortage could last until 2022 or beyond
Intel and TSMC are two of the largest chipmakers in the world, and that is why when both agree that the current chip shortage may continue into 2022, if not beyond, that’s something we do. have to take it very, very seriously.
Neither TSMC nor senior Intel official Pat Gelsinger sees a quick end to the current shortages plaguing big tech companies, automakers and, of course, today’s gamers.
TSMC CEO CC Wei told investors in his latest earnings call that the company had not ruled out chip shortages extending to 2022 (via Reuters).
In response to a question from JP Morgan analyst Gokul Hariharan regarding process node underfeeding next year, Wei replied, “Well, Gokul, let me answer the question carefully because we can’t rule out the possibility of an inventory correction or overbooking, something like that. “
“But in fact,” Wei continues, “we expect structural demand to continue and we will work closely with our customers to develop a technology solution to meet customer needs and create differentiation and lasting value for our customers. . As a result, in fact, we find that the demand continues to be high. And the shortage will continue throughout this year and could be extended until 2022 as well. “
TSMC is responsible for manufacturing the bulk of AMD’s Radeon and Ryzen GPUs.
In addition, new Intel CEO Pat Gelsinger highlighted similar concerns about chip shortages continuing into 2022 and beyond in a interview with the Washington Post.
“We believe we have the capacity to help,” says Gelsinger. “I think it takes a few years before you are fully able to resolve it. It only takes a few years to build capacity. “
So it’s clear that Intel believes the answer to the current shortage is more factories and more capacity. Logic.
While the shutdowns and slowdowns caused by the coronavirus have certainly hampered global supply, it would appear that massive demand for chips far exceeding production is the main concern right now. This has an effect on everything from car manufacturers to why you can’t find a GeForce RTX 3080 on the shelves.
TSMC and Intel will be spending huge sums of money on new manufacturing facilities over the next few years. TSMC hopes to stay at the forefront of demand with an additional $ 100 billion in spending. As Intel develops a foundry business (Intel has so far kept its manufacturing capacity in-house), starting with a $ 20 billion investment to build two new factories at its Arizona facility.
So where does all of this leave gamers? Not in a position of strength, in all honesty. Gaming products are major sources of revenue for Intel, AMD, and Nvidia, so you shouldn’t be concerned that these companies are being rejected for some major automakers. That said, it looks like demand will push more companies to compete for capacity from the major chipmakers, namely TSMC and Samsung, and this could cause prices to increase in the future.
Hoping that doesn’t happen. With more certainty, we can expect a new supply of key gaming PC components for most of 2021, from Intel, AMD and even Nvidia – commented Nvidia’s CFO. graphics card availability last week, nor does he expect a quick fix in the foreseeable future.