Source : Compubase
Author : Lucie Robert
CEOs of major technology companies each have an opinion on how long this "Chipageddon" (short for "chip" and "Armageddon") will last, but all agree that the shortage will affect prices and availability of products and infrastructure, to the point that IBM is seriously considering the option of recycling. Gartner warned this week that the shortage could impact businesses until the end of 2022.
"The shortage first affected monitors, microcontrollers...," said Kanishka Chauhan, an analyst at Gartner. "It has now spread to substrates, cabling -- all elements of the supply chain."
This global crisis is affecting many vertical sectors. In particular, it is expected to deprive the global automotive industry of $110 billion in revenues by 2021. The estimate was recently revised upwards (+81%) by the consulting firm AlixPartners, which was looking at $60.6 billion in January of this year.
According to Intel's new CEO, Pat Gelsinger, the shortage will not be resolved for a few years: "Intel is reorganizing some of its factories to increase production for automakers, but it will take at least several months before supply eases.
Extreme Networks CEO Ed Meyercord believes supply chain constraints will persist for nine to 12 months.
Cisco CEO Chuck Robbins is more optimistic: "We think we have another six months. Vendors are developing more capabilities. And it will get better and better over the next 12 to 18 months.
"The supply chain has never been more constrained in Arista's history," according to CEO Jayshree Ullal. "We now have to schedule many components with 52-week lead times."
"Making a chip is one of the most capital- and R&D-intensive manufacturing processes in the world, if not the most intensive," says Falan Yinug, director of industry statistics and economic policy at the Semiconductor Industry Association, in a blog. "There can be as many as 1,400 steps in the semiconductor wafer manufacturing process. It can take up to 26 weeks to manufacture a chip."
According to IBM President Jim Whitehurst, the current chip shortage is so severe that Big Blue is considering recycling to increase capacity. He told the BBC that the company has no choice but to consider these alternative means to meet consumer demand. "We're going to have to look at reusing, extending the life of certain types of computing technology, as well as accelerating the investment in these [manufacturing plants], so we can bring more capacity online as quickly as possible."