Global chip makers warn that global chip shortages will last for years

According to industry media reports, some well-known chip designers and manufacturers in the world recently warned that although industry manufacturers are investing billions of dollars to speed up the construction of wafer fabs, the global chip shortage may continue until 2022 or 2023.

TSMC, Intel and Nvidia expect the crisis to last for several years as it takes time for new wafer fabs to be operational.

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The chip shortage will continue for some time

Representatives of TSMC, the world's largest OEM chipmaker, said in a conference call with research institutions that the severity of the chip shortage should ease from the next quarter, but the overall shortage will last for a year or even a long time.

TSMC plans to invest about $30 billion this year to expand production, which will reduce the company's gross profit margin, which has dropped to 49.5% from the expected 51.5%.

In order to meet user needs, the company's production line utilization rate has reached 100%, and it is expected that market revenue this year will increase by 20% over last year.

Nvidia, a major customer of TSMC, said: "Overall market demand remains very strong, chip products are in short supply, and our channel inventory remains scarce. We expect chip products to remain in short supply for most of this year."

Nvidia Chief Financial Officer Colette Kress said the company hopes to have enough supply to support continued growth beyond the first quarter of 2022, but it can't meet that demand at this time.

Intel CEO Pat Gelsinger said in an interview with The Washington Post that it will take some time for chip production to meet supply because it takes several years to add new production capacity. Speaking of the chip shortage, he said: "I think it will take several years to fully resolve it."