Technology

Global chip shortage may ease later this year as demand softens

RAM memory chips are seen in this illustration photo

RAM memory chips are seen in this illustration photo | Photo Credit: Reuters

Global chip shortage is likely to ease in the second half of this year as demand for electronic gadgets soften amid rising inventories. 

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“Over the past few months, what we have seen is softening demand intersecting nicely with higher inventories,” said Dale Gai, Director, semiconductor and components practice at Counterpoint Research

The firm noted that inventory level of 5G-related chipsets including mainstream application processors, power amplifiers and RF transreceivers has increased.

The supply gap for the most important PC components like power management ICs, Wi-Fi and I/O interface IC across PCs and laptops has also narrowed, according to Counterpoint.

Expansion in wafer production and continuous supplier diversification have also improved the component supply situation, Counterpoint noted.

However, the research firm is concerned about the lockdowns in China, which could have a domino effect.

“The big risk factor moving forward is the lockdowns happening across China right now,” said said research analyst William Li, who focuses on semiconductors and components.

However, he expected the semiconductor shortage to ease around late Q3 or early Q4 if the government can manage the outbreak and help key ecosystem players turn the corner quickly.

Chip shortages have hit many industries for the past two years cutting production. Vendors across the supply chain have spent much effort dealing with uncertainties. 


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Printable version | Jun 16, 2022 12:23:03 pm | https://www.thehindu.com/sci-tech/technology/global-chip-shortage-may-ease-later-this-year-as-demand-softens/article65356258.ece