Dell Expects That Chip Shortage Can Last Several Years

Most players estimate the worldwide shortage of chips as something that could last until next year. Dell is more pessimistic and states that an increase in production will take several years.

 

Michael Dell, CEO and founder of Dell Technologies, says in an interview with the German Handelsblatt that he does not expect the chip shortage to be over quickly. “The shortage is likely to last for several years,” he says. ‘even if chip factories are built worldwide, it will take time.’

He notes that the problem affects the entire sector but that the older and cheap chips, in particular, are struggling. But even newer technology is challenging to obtain. ‘

Dell is the third largest computer manufacturer in the world, including European factories in Poland and Ireland. In the same interview, he also applauded the European ambition to build more chip production within the EU. “It would be great if a chip factory were built in Germany,” he told the German newspaper.

Earlier chipmaker TSMC also indicated that the problem would not be solved this year. A few weeks ago, Intel CEO Pat Gelsinger also spoke of something that would take ‘years’. Both companies announced last month to invest tens of billions to produce more. Intel is also looking at a European factory for this, Germany or the Benelux, but wants to receive subsidies in return.

The worldwide chip shortage is due to a combination of circumstances. The main factor seems to be that many appliance makers assumed a declining demand due to the corona crisis. Less was produced by their suppliers (the chip manufacturers). But instead, demand just kept increasing.

Other factors include the US trade sanctions against Chinese companies, the power problems in Texas that reduced Samsung and NXP, and the drought in Taiwan, making TSMC, which accounts for more than half of all chips, struggling. But less well-known players such as the Japanese Renesas, which mainly makes chips for the car sector, also had problems due to a factory fire.

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