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Horror Prediction Claims the Chip Shortage Could Last Until 2025

The disruptions caused by the lack of chips have so far been devastating, with some industries having no other option than to temporarily suspend the production until the inventory was improved.
The lack of chips hit the car industry very hard 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 automotive sector has been struggling with the semiconductor crisis for many months already, and large companies like Ford, General Motors, and Volkswagen decided to idle certain facilities because they didn’t have enough chips to install on cars.

Now the industry consensus seems to indicate the chip shortage wouldn’t necessarily come to an end this year, but it should at least ease off substantially in the last few months of 2022.

Dr. Yuh-Jier Mii, Senior Vice President of Research and Development at TSMC, the world’s largest chipmaker, has a similar opinion, though they recently came up with a much more worrying prediction.

In an interview, Mii explains that while the chip recovery should begin this year, it could still take way too long until the crisis is completely over. He believes bringing enough fabs to the market isn’t possible earlier than 2025, which means the chip shortage would continue for at least 2 or 3 years.

Mii says the semiconductor crisis isn’t necessarily caused by the global health issue, though this had a major contribution to the very constrained supply across the world. The TSMC official says the demand was obviously growing, pretty much because the majority of products out there get smart capabilities that require chips to do their magic.

For the time being, however, the automotive market is still waiting for this highly anticipated recovery supposed to happen this year. Because right now, many are still implementing the painful decisions mentioned above, including temporary halts of their production at certain factories.

Time will tell who’s right on the end of the chip shortage, but the end of the health crisis should ease the pressure on foundries across the world in a substantial manner.
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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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