Intel, TSMC, and Nvidia All Say "Semiconductor Shortage Until 2023"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The global semiconductor industry expects the semiconductor shortage that began with COVID-19 to continue through 2023. Despite short-term efforts to expand supply by U.S. semiconductor company Intel, foundry industry leader Taiwan's TSMC, and the world's largest graphics processing unit (GPU) company Nvidia, the semiconductor shortage is expected to persist long-term.

According to major foreign media on the 17th, Pat Gelsinger, CEO of Intel, said in a recent interview with The Washington Post (WP) that with limited manufacturing facilities and sharply increased demand, it will take years to resolve the semiconductor shortage affecting industries such as the automotive sector. He stated, "We believe we can help solve this," but added, "However, it will take years to completely resolve it."

TSMC also forecasted that the semiconductor shortage will ease only in 2023. Wei Zhejia, CEO of TSMC, said, "We expect semiconductor demand to remain continuously high, and we anticipate being able to supply more semiconductors to our customers in 2023. By then, supply chain issues will begin to be somewhat resolved."

Nvidia also projected that sufficient supply to meet demand will not be achieved until after the first quarter of fiscal year 2022. Colette Kress, Nvidia's Chief Financial Officer (CFO), said at the first-quarter earnings announcement on the 12th, "Overall demand remains very strong and greatly exceeds supply," adding, "We expect this situation to continue throughout this year."

The semiconductor shortage that began at the end of last year is prolonging. Automakers such as Ford, Nissan, and Volkswagen have consecutively halted production, and Hyundai Motor and Korea GM have also experienced factory shutdowns due to the semiconductor shortage. Recently, the shortage has spread to home appliances and smartphones, but finding immediate solutions remains difficult. In response, governments of major countries including the U.S., Europe, and China are promoting semiconductor self-reliance and continuously introducing support measures to foster their domestic semiconductor industries.