40.6 C
Delhi

TSMC: Semiconductor crisis to continue until the end of 2023

In recent news, global leaders in the semiconductor market such as the Taiwan Semiconductor Manufacturing Co, Intel, and Nvidia have warned that the global semiconductor shortage could stretch to 2022 or 2023, despite billions in fab investments. They believe that through a huge capital is being invested in establishing the silicon manufacturing plants, the plants take time to be established and start their operations.

Until new plants begin their operations, the silicon manufacturing giants have to do with the existing plants and feel the burden of not meeting the current demand. TSMC stated that the severity of the shortage should reduce from the next quarter, but that the overall shortages will last throughout the year and likely into the next.

The Taiwanese semiconductor giant plans to spend about $30 billion on expanding production this year, cutting into its gross margins – with the company dropping to 49.5 percent from an expected 51.5 percent. The company is stated as the world’s largest contract manufacturer and is operating at its 100 percent utilization, yet fearing that it won’t be able to meet the growing demand anytime soon.

The company has customers like Nvidia, which is experiencing a higher demand for its latest Graphics processors. However, it is unable to meet the demand due to a shortage of components. Nvidia stated that “overall demand remains very strong and continues to exceed supply while our channel inventories remain quite lean. We expect demand to continue to exceed supply for much of this year.”

- Advertisement -TechnoSports-Ad

Intel CEO Pat Gelsinger stated that “I think this is a couple of years until you can address it.” All the tech giants are vigorously trying to fight the impending chip shortage crisis. However, it seems that it will take a couple of years to get the supply online. And the demand for high-performance gadgets doesn’t seem to die down any time soon.

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

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.
TechnoSports-Ad

Popular

TechnoSports-Ad

Related Stories

More from author

The list of Airtel SMS packs as of May 25, 2024

Check out the list of Airtel SMS packs, including costs and validity information. We have shared a list of Airtel SMS recharge plans that...

My Jio Recharge Plans as of May 25, 2024: Top trending plans from Jio

My Jio Recharge Plans: Since its establishment in 2016, Reliance Jio has made a remarkable impact on the Indian te­lecommunications industry. The company has...

The Best Recharge Plan for Jio as of 25th May 2024

Best Recharge Plan for Jio in 2024: The Ultimate Guide In the past few months, Jio has introduced and tweaked a slew of new...

HBO Max in India: Here’s how you can watch the service using VPN (May 24)

HBO Max in India might launch soon but still, we cannot deny that we want to enjoy our favourite HBO shows as soon as...