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Tech Giant Has Both Good News and Bad News on the Chip Shortage (Spoiler: End in Sight)

Everybody hopes the chip shortage will eventually come to an end at some point this year, but by the looks of things, more and more industry experts are now predicting the worse on this front.
The production of cars has been hit hard by the constrained chip inventory 27 photos
Photo: Ford
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In other words, the struggle to find chips for new products will continue into 2023, still causing significant disruption in several industry sectors out there.

But the CEO of tech giant Micron (you probably know them for their USB flash drives and computer memory), a key player in the semiconductor business, comes with both good news and bad news regarding the chip crisis.

First of all, the second half of this year is going to bring a somewhat notable recovery in terms of chip supply, Sanjay Mehrotra, president and CEO of Micron Technology has recently been quoted as saying. On the other hand, this doesn’t necessarily mean the crisis will be over this year.

So second of all, the shortage will continue into 2023, therefore still causing problems for some particular industry sectors.

Mehrotra was one of the tech executives who attended an official meeting with President Biden to discuss the current supply chain issues.

And unsurprisingly, the Micron CEO highlighted the problems the automotive market is currently facing with the constrained chip inventory. Mehrotra compared the new-generation cars with data centers on wheels, explaining that the number of chips they use these days is continuously on the rise.

Truth be told, this is what’s causing particular trouble for carmakers as well. The number of chips used on smart vehicles is one of the factors behind the insufficient chip inventory for some companies, with some of them prioritizing the production of their best-selling models specifically to deal with the current crisis.

It remains to be seen if Micron’s CEO is right or not, but for now, most industry experts believe the end of 2022 would bring a notable recovery for most industries out there. As for the full end of the chip shortage, this is something that’s impossible to guess for so many reasons, including the geopolitical tensions currently happening in Europe.
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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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