Photo: Daimler
There are several industry sectors out there that are struggling to find a more efficient way of coping with the chip shortage, other than suspending their production and reducing the output of essential products, so everybody’s wondering when this whole nightmare could eventually come to an end.
There’s no easy answer to this question, and while some people expect the whole thing to be over this year, others believe the chip crisis could extend to 2024.
As far as tech giant Micron is concerned, the world has already embarked on a gradual recovery from the shortage, so in theory, we already see the constrained inventory easing off in the second half of the year. This is the good news.
The bad news is the full recovery wouldn’t take place until 2023, with Sanjay Mehrotra, president and CEO of Micron Technology, explaining some industries are hit harder than others because of the number of chips they use on their products.
Mehrotra specifically pointed to the automotive industry, calling the new cars “data centers on wheels.” In other words, new vehicles use an army of chips supposed to power their new-generation capabilities, and this is why carmakers out there now have such a hard time securing the necessary semiconductor inventory.
The Micron CEO released these comments following a meeting with President Biden at the White House, confirming his company would continue investing in its capacity to support the chip recovery.
On the other hand, there’s now concern that the chip shortage could hit another problem. Two of the largest producers of neon, which is being used by the lasers that build the chips, are based in Ukraine, and they have both stopped their production recently due to the Russian invasion.
Because the neon supply could face some disruptions in the short term, industry analysts are concerned the chip production could eventually be impacted as well or could lead to increasing prices that would eventually be transferred to the customer.
As far as tech giant Micron is concerned, the world has already embarked on a gradual recovery from the shortage, so in theory, we already see the constrained inventory easing off in the second half of the year. This is the good news.
The bad news is the full recovery wouldn’t take place until 2023, with Sanjay Mehrotra, president and CEO of Micron Technology, explaining some industries are hit harder than others because of the number of chips they use on their products.
Mehrotra specifically pointed to the automotive industry, calling the new cars “data centers on wheels.” In other words, new vehicles use an army of chips supposed to power their new-generation capabilities, and this is why carmakers out there now have such a hard time securing the necessary semiconductor inventory.
The Micron CEO released these comments following a meeting with President Biden at the White House, confirming his company would continue investing in its capacity to support the chip recovery.
On the other hand, there’s now concern that the chip shortage could hit another problem. Two of the largest producers of neon, which is being used by the lasers that build the chips, are based in Ukraine, and they have both stopped their production recently due to the Russian invasion.
Because the neon supply could face some disruptions in the short term, industry analysts are concerned the chip production could eventually be impacted as well or could lead to increasing prices that would eventually be transferred to the customer.
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