Cisco CEO Chuck Robbins has just recently shared his thoughts regarding the crippling global chip shortage and how he thinks it is going to last. The global chip shortage is expected to impact the global supply chain for yet another six months.
How Long Will the Chip Shortage Last?
In a statement to BBC, Chuck Robbins notes that the industry has yet another six months for everyone to get through the whole short term crisis. The providers are now reportedly building out additional capacity. He also notes that things will get better and better over the course of the next 12 to 18 months.
In a recent interview with the network, Robbins also noted that there was a particular disconnect between both the semiconductor expected consumption as well as the reality during COVID-19. He noted that semiconductors are now going into virtually everything and what particularly happened when COVID hit was that everyone thought that the whole demand side was generally going to significantly decline but in fact saw a massive increase.
Why is There a Semiconductor Chip Shortage?
The Costco CEO then noted that they themselves have seen the demand side increase. Robbins explained that what actually happened was that all of the manufacturers just like Cisco sent some lower demand signals to other providers who then resultantly reduced their capacity. The demand then unexpectedly went up and was reportedly a complete shock to a lot of them.
Robbins then stated that this is exacerbated because there is currently so much demand within the system. The contract chip maker known as Taiwan Semiconductor Manufacturing Company or TSMC earlier stated that it now expects chip supply shortages to continue well throughout 2022.
Why the Chip Shortage is so Hard to Overcome?
According to the story by ZDnet, quite similarly, AMD is now expecting the shortage to impact the whole industry a little while longer. The current supply-chain disruption within the whole semiconductor industry has impacted a lot of different tech firms. The impact, however, has also been felt well around other sectors.
Intel CEO Pat Gelsinger reportedly stated that this month, his company was even in talks with some semiconductor manufacturers in order to fill the whole silicon shortage that has reportedly stalled the whole production of new vehicles. The US-China tech war has affected their relations that now demands that each country provide a larger local capacity in chip production which is also now hurting supply.
Chip Shortage 2021
US President recently signed an executive order that reportedly aims to address the whole semiconductor chip shortage. The president reportedly wants congress to authorise a whopping $37 billion to make sure that the US is capable of supplying auto makers, according to Reuters.
Shortly after, other major chip manufacturers which include IBM, Intel, Broadcom, Nvidia, Qualcomm, and AMD all lobbied in order to support America's massive chip industry as part of the total $2 trillion recovery plan, according to semiconductors.org.
Related Article: ISPs Suffers Severe Delays as the Global Chip Shortage Causes Router Orders to Remain Unfulfilled
This article is owned by Tech Times
Written by Urian B.
