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Hunker Down – the Chip Shortage Is Here for a While

10/24/2021

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With recent murmurings of chip shortages easing in 2022, one could be forgiven for imagining some sort of promised land where prices return to the lower levels once remembered.

Unfortunately, that idea will have to be consigned to the land of rainbows, pixie dust, and affordable housing in major cities, because while the situation may ease, that doesn't mean it will stop growing.

For Gartner senior analyst Ben Lee, the relief slated to arrive in the middle of 2022 is not a lowering of absolute prices, but a slowing in the rate of growth.

The semiconductor chip shortage that is hamstringing the production of products ranging from cars and computers to appliances and toothbrushes will extend into 2022 and potentially beyond that, according to Matt Murphy, CEO of Marvell Technology.

“We’ve always gone through cycles of ups and downs, where demand has exceeded supply or vice versa,” AMD CEO Lisa Su said at the recent Code Conference in Beverly Hills. “This time, it’s different.”
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Su said that while she expects the first half of 2022 to be “likely tight,” the second half will be less severe as manufacturing capacity opens.

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    Author

    Rick Richardson, CPA, CITP, CGMA

    Rick is the editor of the weekly newsletter, Technology This Week. You can subscribe to it by visiting the website.

    Rick is also the Managing Partner of Richardson Media & Technologies, LLC. Prior to forming his current company, he had a 28-year career in technology with Ernst & Young, the last twelve years of which he served as National Director of Technology.

    Mr. Richardson has been named to the "Technology 100"- the annual honors list of the 100 key achievers in technology in America. He has also been honored by the American Institute of CPAs with two Lifetime Achievement awards and a Special Career Recognition Award for his contributions to the profession in the field of technology.

    In 2012, Rick was inducted into the Accounting Hall of Fame by CPA Practice Advisor Magazine. He has also been named to the 100 most influential individuals in the accounting profession in America by Accounting Today magazine.

    In 2017, Rick was inducted as a Marquis Who’s Who Lifetime Achiever, a registry of professionals who have excelled in their fields for many years and achieved greatness in their industry.

    He is a sought after speaker around the world, providing his annual forecast of future technology trends to thousands of business executives, professionals, community leaders, educators and students.

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