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Here’s When the Chip Shortage Is Going to End, According to a U.S. Tech Giant

While the chip crunch keeps wreaking havoc in the majority of industries out there, most companies seem to believe that the second half of the year could finally bring some sort of recovery in terms of global inventory.
The production of cars in the U.S. has been massively impacted by the constrained chip inventory 6 photos
Photo: GM
GM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plantGM's Flint assembly plant
The opinions on this front, however, are divided.

Intel, for instance, doesn’t believe the chip shortage can come to an end earlier than 2024, warning that semiconductor manufacturers are now struggling with a shortage of materials for the machines powering their production lines.

U.S. chip maker Qualcomm is a lot more optimistic.

In a recent interview, company CEO Cristiano Amon said the chip shortage would start easing off in the second half of 2022, while next year “we’re going to get out of the crisis.

Certainly, this is good news for the entire world, especially given the forecast comes from one of the largest chip makers. But Amon claims that not everybody is going to experience the end of the crisis at the same time, as some companies, and presumably some industry sectors, might continue to struggle with the limited inventory until 2024.

Amon believes the world underestimated the importance of chips for the production of pretty much everything, and he used the automotive industry to prove his point.

The number of chips installed on new cars is continuously growing, especially as vehicles are becoming smarter and end up being fitted with new-generation systems. And this trend will continue, Amon believes, with the number of chips used on cars to therefore continue to increase at a steady pace.

Most carmakers expect the chip shortage to also ease off in the second half of the year, but right now, even the biggest companies continue to struggle with the disruptions it caused in their daily operations.

Ford has recently reported another decrease in sales versus 2021, though, on the other hand, the company’s latest data seems to indicate that the chip inventory is indeed improving slowly but steadily.
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About the author: Bogdan Popa
Bogdan Popa profile photo

Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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