Sunday, May 29, 2022

Global Semiconductor Chip Shortage coming to an End

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According to a report from Counterpoint Research, the worldwide semiconductor shortfall could alleviate in the second half of 2022 as demand-supply gaps narrow. The analysis, which focuses on China as one of the world’s top semiconductor makers, shows that supply and demand imbalances have been narrowing since late last year.

Thankfully, inventory levels of 5G-related chipsets, application processors, and RF equipment have increased, as have inventory levels of PC components: “We have seen substantial improvement in the component supply situation, at least in the first quarter, coupled with wafer production expansion and continued supplier diversification,” said William Li, a research analyst who focuses on semiconductors and components.

The global electronics scarcity created by the epidemic and the Russia-Ukraine war has been compounded by an increase in demand from consumers and producers, according to Raspberry Pi CEO Eben Upton. Bots immediately scooping up available stock in order to scalp it for a greater price hasn’t helped matters either. Many resellers, thankfully, have taken steps to prevent this from happening.

Lockdown in China might further impact the semiconductor supply chain

(Image credit: European Space Agency/Guus Schoonewille)

However, Li’s study implies a drop in actual shipments, as increased production during the shortage has resulted in greater inventory in circulation, with other variables limiting consumer supply. Lockdowns have occurred throughout China, particularly in the Shanghai area, as well as the war in Ukraine, which, according to a recent Vox piece, is critical to the supply of neon to chipmakers.

Counterpoint Research believes the scarcity will be over by the end of the year, citing a 3.1 percent increase in worldwide PC shipments in Q4 2021. Nonetheless, Ivan Lam, the firm’s senior analyst, warns that more Covid waves might tighten things up again. “Last year, the supply chain was fortunate, but this year’s COVID wave is a major challenge that [China] must manage cautiously but fast,” “Lam clarified. “It’s crunch time, and all eyes are on China right now.”

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Nivedita Bangari
Nivedita Bangari
I am a software engineer by profession and technology is my love, learning and playing with new technologies is my passion.


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