Unless you’re living in a cave, you should probably know that many industries, including the automotive and electronics industries, are facing semiconductor shortages. And unfortunately this situation can last for several years. At least that’s what Pat Gelsinger, the head of Intel, pointed out recently during an intervention at the Computex trade fair.
As reported by Reuters, the Intel CEO stated that teleworking and distance learning created an “explosive semiconductor growth cycle” that is creating tension in the supply chain. “But while the industry has taken steps to address the short-term constraints, it could be a few more years for the ecosystem to address the lack of foundry capacity, substrates and components,” he said.
He had already mentioned this situation in April. And in light of this problem, Intel has already announced a $ 20 billion plan to increase its chip manufacturing capabilities.
Computer and smartphone prices could rise
In any case, this scarcity could lead many players to raise the prices of their products to offset the extra costs caused by the scarcity of chips. For example, according to a Zdnet article, Gianfranco Lanci, Lenovo’s Chief Operating Officer, said, “Prices are rising slowly. And to maintain the profitability we need, we keep watching prices. We want to be competitive, of course, but prices are slowly rising. I think that we will continue to grow in the next 3-4 quarters due to the development of component costs. “
Other computer manufacturers are said to have similar plans. And price increases are also possible in the smartphone market. Xiaomi, pointing to an extreme shortage, had hinted that it could also check the prices of certain products.
“To be honest, we’ll do our best to give consumers the best possible price. But sometimes, in different cases, we have to pass on part of the increased costs to the consumer, ”the President of Xiaomi said in a conference call in March.
To solve this problem, one of the main founders, TSMC, has already announced a $ 100 billion plan to increase production capacity. “TSMC plans to invest $ 100 billion over the next three years to increase its ability to support the manufacture and research and development of advanced semiconductor technologies,” the company said in a statement released by Bloomberg in April. “TSMC works closely with our customers to meet their needs on a sustainable basis. “