Chip shortage to last through 2022, says Arm chief executive

Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="A worker inspects semiconductor chips at a chip packaging firm plant in Ipoh, Malaysia on October 15, 2021. Lim Huey Teng, Reuters/file" src="http://sa.kapamilya.com/absnews/abscbnnews/media/2021/reuters/11/02/20211102_global-economy.jpg"/><figcaption>A worker inspects semiconductor chips at a chip packaging firm plant in Ipoh, Malaysia on October 15, 2021. <em>Lim Huey Teng, Reuters/file</em></figcaption></figure></div><p>The shortage of computer chips that is hobbling auto manufacturers will last until the end of next year, the head of a leading designer of semiconductors said on Tuesday.</p><p>Arm Holdings chief executive Simon Segars said that the semiconductor industry is currently investing some $2 billion per week, which will eventually lift production by 50 percent, but that supply will remain tight in the near term.</p><p>&quot;Where are we going to be next Christmas? I expect this supply chain constraints to be a little better but it won&#x27;t be completely fixed,&quot; Segars said at the Web Summit in Lisbon.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/11/02/21/apple-cuts-ipad-production-to-feed-chips-to-iphone-13">Apple cuts iPad production to feed chips to iPhone 13: Nikkei</a></li></ul><p>&quot;This isn&#x27;t a short-term problem with a short-term solution.&quot;</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/10/28/21/nokia-shrugs-off-chip-problems-to-double-profit-in-q3">Nokia shrugs off chip problems to double profit in Q3</a></li></ul><p>Britain-based Arm is a designer of computer chips that are used to power many consumer electronics devices, and is in the process of being bought by US firm Nvidia from Japan&#x27;s Softbank in a $40 billion deal.</p><p>The semiconductor industry was overwhelmed as consumers stepped up purchases of electronic devices during the coronavirus pandemic. That increased demand, along with disruptions caused by Covid-19 lockdowns, has caused shortages. </p><p>The auto industry has been particularly hard hit, with shortages expected to block the production of 7.7 million vehicles this year, according to one estimate.</p><p>Segars, who was among the first employees Arm hired after its founding in 1990, said the semiconductor industry is known for being cyclical but that the current situation is unprecedented. </p><p>&quot;We&#x27;ve been in situations before where there has been in some cases over supply, in other cases under supply, but it&#x27;s never been like it is right now,&quot; he said.</p><p>Segars said the delay for some chip orders is now stretching over one year.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/10/20/21/malaysia-chip-crunch-triggers-new-era-in-supply-deals">Malaysia chip crunch triggers new era in supply deals</a></li></ul><p>&quot;That is just unprecedented,&quot; he said.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/10/07/21/japan-us-business-leaders-call-for-improved-supply-chains">Japan, US business leaders call for improved supply chains</a></li></ul><div><strong>FROM THE ARCHIVES</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1817606" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div>

Britain-based Arm is a designer of computer chips that are used to power many consumer electronics devices.

Chip shortage to last through 2022, says Arm chief executive | ABS-CBN

Entertainment

News

Metro.Style

Sports

More

Business

Chip shortage to last through 2022, says Arm chief executive

Chip shortage to last through 2022, says Arm chief executive

Agence France-Presse

Published Nov 03, 2021 04:50 AM PHT

|

Updated Nov 03, 2021 05:35 AM PHT

Read More:

chip shortage

semiconductors

semiconductor industry

global supply chain

computer chips

electronics

Nvidia

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

Terms of Service

Advertise with Us

© 2024 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Advertise with Us

Privacy Policy

Terms of Service

© 2024 ABS-CBN Corporation. All Rights Reserved.