Global chip shortage to last a couple more years confirms IBM

Written by Stuart Thomas on Mon, May 17, 2021 11:36 AM

As the state of PC hardware still shows no signs of getting any better, many users will have by now heard of the global chip shortage that is affecting many manufacturers across the globe. We’ve had a lot of big tech companies come out to say it won’t get much better anytime soon, but now the tech giant IBM has also chimed in.

Speaking in a recent interview the President of IBM, Jim Whitehurst, mentioned how the reason why we’ll be waiting for so long for the chip shortage to alleviate is because it just takes so long to build a new fab:

There’s just a big lag between from when a technology is developed and when [a fab] goes into construction and when chips come out,” said Whitehurst. “So frankly, we are looking at couple of years...  before we get enough incremental capacity online to alleviate all aspects of the chip shortage.

That makes sense considering big fabs like TSMC have so far been up to 30% behind in demand, and so in order to bolster capacity they will be spending $100 billion to build new fabs. But that takes time to construct, and only once that is done can they even start to help in catching up with demand. So it will be a couple of years until we even start seeing capacity build back up, and even longer until it is completely alleviated.

Intel too mentioned the same thing recently, both them and TSMC said the global chip shortage could last until 2023, with the former tech giant even opening up their own foundries to other companies and manufacture chips for other clients.

Of course, the chip shortage affects more industries than just PC hardware, with automobile manufacturers getting hit the hardest. That resulted in Nvidia, AMD, and Intel urging the US president to increase chip production in America, allowing them to compete against the currently-dominant Asian fabs.

That’s all to say once again things aren’t looking too good for the global chip shortage, and we’ll still be waiting a while for supply to catch up with demand. For PC gamers? That means we can expect GPU shortages to continue until next year, which is all the more reason an official graphics card from Intel is quite exciting.

What do you think? When will the chip shortage end? How long until GPU stock is back to normal? Do you think graphics card prices will normalize to MSRP afterwards? Or will it take a while for prices to return to normal? Let us know!

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19:38 May-17-2021

And in the meantime Intel releases new cpu that are slower and worse then previous ones...

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06:07 May-20-2021

... you forgot to say also more expensive lol

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16:32 May-17-2021

Thanks scalpers and crypto hungry dumbasses. You really did a fantastic thing. And also thanks governments for unecessarily restrictive regulations.

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16:47 May-17-2021

I can understand hating on crypto - fine, it produces demand. But scalpers? Beside being dicks - they don't produce demand, they ANSWER to the demand by trying to be quicker. The problem is the demand - and that is on everyone in varying proportions.


Also - this is talking silicon chips, not just GPUs (which are a part of that group). Car manufacturers can't even get chips to run their car computers, so WTF do GPUs alone have to do with anything?

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17:54 May-17-2021

So this shortage is only due the high demand? it is not lack of raw materials right? it has more to do with supply and demand? i dont really see why people need more cars when the pandemic is going, more pc and electronic devices ? sure , but is that big of a deal?

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18:13 May-17-2021

The demand is very much elevated because all those services that people use - Teams, Zoom, email, etc - they needed huge and rapid upgrades to keep up with the amount of people suddenly using them. Do you not think that half the world suddenly sitting at home at the same time had no impact like that? Then you have factories closing (or reducing manpower) for national holidays and covid - that obviously doesn't help. Supply chains stretched because of covid bureaucracy on top of that.
It all adds up, but if there was no demand - there would not be issues

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18:15 May-17-2021

As for cars - yeah, I'm definitely not crying for the car makers. Cars are something you should keep for as long as possible - THAT is the real way to reduce emissions, especially with modern engines and exhaust filters - not buying a new one every 2 years. The car makers could disappear off the face of the Earth tomorrow and it would probably be a good thing (minus the jobs lost).

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13:40 May-17-2021

Considering that China is determined to invade Taiwan soon, TSMC will either get annexed or destroyed. The result means the Chip shortage will NOT, END, EVER. It would take other fabs YEARS to catch up to where TSMC was in 2021.

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07:19 May-18-2021

If china is starting wars there will be more serious issues than mah gpu though!

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13:37 May-17-2021

Nobody knows for sure, since these projections are very unpredictable, if we were to talk about situation where this would be an everyday circumstance then yeah, but there are a lot of other variables like Covid-19, miners, scalpers and many more. So in other words it all could go back to normal when:

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13:40 May-17-2021

global pandemic ends, then all the restrictions will open up therefore we get more chips, in result producing more chips than miners could buy out wholesale and then scalpers will follow as there would be more gpus than they can snatch

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13:44 May-17-2021

Even if the pandemic ended tomorrow, it would take 18 months for supply to catch up with demand. So we're still looking at 2023 at best.

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13:46 May-17-2021

If crypto mining ended tomorrow however, that would result in hyper inflation with Fiat money. Then you would be looking at GPU's jumping up in price 5 to 20 fold. There is no scenario on this planet where GPU's ever go back to normal.

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16:51 May-17-2021

If crypto mining ended tomorrow (say, all the GPU-centric networks went proof-of-stake, rather than proof-of-work) - you'd see a market FLOODED with GPUs that are no longer useful - which would mean they'd sell at lower prices.


Not that it matters anyway, as it's not just miners that gobble up the chips. Don't forget - this is talking silicon chips, not just GPUs. Car manufacturers can't even get chips to run their car computers, so WTF do GPUs have to do with anything? lol

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11:49 May-17-2021

ok rx 580 you are my boy untile i get 5700xt

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13:49 May-17-2021

That's right brother!

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17:56 May-17-2021

I might just wait for 4000 series, not that i was very interested in this gen due the lacck of vram on 3070 s

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