Earlier this year it was revealed that we’re currently going through a global chip shortage that has seen chipmakers struggling to keep up with demand, leaving a limited amount of silicon to other manufacturers downstream. This has affected almost every electronics manufacturer including graphics cards, automotive vehicles, general electronics etc. Now TSMC and Intel say they won’t get a handle on things until 2023.
Speaking to investors recently, TSMC’s CEO, C.C. Wei, said that they hope to “offer more capacity” for meeting demand from retailers and manufacturers “in 2023.” So whilst the situation may get better before then, that’s when the company predicts they’ll finally be able to meet demand (it has previously been reported that semiconductor manufacturers are currently 10-30% behind demand).
That’s a pretty dire estimate, one that was also echoed by Intel’s CEO Pat Gelsigner in an interview earlier this week, where he said that they “do believe we have the ability to help,” when it comes to making chips for other companies with their own internal foundry. However, Gelsigner thinks that “this is a couple of years until you are totally able to address it,” as “it just takes a couple of years to build capacity.”
So on the one hand we have TSMC saying they won’t be able to fully meet demand until 2023, and Intel saying that the shortage won’t be fully addressed until after 2022. On the other hand, we have Nvidia claiming a more optimistic outlook, saying that whilst demand will certainly outstrip supply for most of the year, the company will have “sufficient supply to support sequential growth beyond Q1 .”
Nvidia is currently receiving chips from both TSMC and Samsung for their RTX 30 series, and considering that by Q1 2022 demand will be less than Q1 2021 (as more people end up getting GPUs before then), it’s very likely Nvidia will be able to keep up with demand at that point, even if it is a bit optimistic.
No matter how optimistic anyone is about the global chip shortage, we can expect issues with supply to continue for a long while.
What do you think? When do you reckon demand will be able to meet supply? What hardware other than a new graphics card are you looking to buy in the next few years? Let us know!