Saudi Press

Saudi Arabia and the world
Wednesday, Apr 24, 2024

IBM says chip shortage could last two years

IBM says chip shortage could last two years

The boss of the US tech giant IBM has said a computer chip shortage could last another two years.

Its President Jim Whitehurst told the BBC it could be "a few years" before the situation improves.

Many firms have seen production delayed because of a lack of semiconductors, triggered by the pandemic.

The shortage has been exacerbated by surging demand for TVs, phones and gaming consoles while consumers are stuck at home.

Mr Whitehurst said on BBC World Business News: "There's just a big lag between from when a technology is developed and when [a fabrication plant] goes into construction and when chips come out".

"So frankly, we are looking at couple of years… before we get enough incremental capacity online to alleviate all aspects of the chip shortage."

IBM licenses its microprocessor technology to the world's biggest chip makers such as Intel, TSMC and Samsung.

Mr Whitehurst added that the firm would have to look at alternative ways to meet consumer demand.

"We're going to have to look at reusing, extending the life of certain types of computing technologies, as well as accelerating investment in these [fabricating plants], to be able to as quickly as possible get more capacity online," he said.

The shortage, which was heightened after many factories shut down at the height of the pandemic, has been exacerbated by surging demand for home computers, gaming consoles and smartphones.

Apple, the world's biggest buyer of semiconductors, was forced to delay the launch of its latest iPhone due to the shortage,.

Mr Whitehurst is the latest tech boss to weigh in on the issue.

The boss of networking giant Cisco, Chuck Robbins, told the BBC in April that he believed the shortage would last at least another six months.

US President Joe Biden also sees the shortage as a long-term issue and used a White House summit with business leaders last month to urge them to make the country a world leader in computer chips.

Amid the trade and technology war with China, the White House has said it is "a top and immediate priority".

According to the US-based Semiconductor Industry Association, about 75% of global manufacturing capacity is in East Asia.

Taiwan's TSMC and South Korea's Samsung are the dominant players.

European politicians also want more chips made locally.

Meanwhile, China has seen a huge growth in domestic demand for chips to power new technology, but has only a small share of global manufacturing capacity.


The increase in demand for semiconductors during the pandemic surprised many, Mr Robbins says


Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×