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Chip shortages expected until 2023

There is a growing consensus that the global shortage of semiconductors won’t end any time soon and that it is starting to impact the global economy.

Weak manufacturing figures from Germany, for example, are being seen as sign that supply shortages and higher prices are hitting its economic recovery.

Last week Intel and IBM warned that chip shortages could last through until 2023 and now one of the world’s largest electronics contract manufacturers, Flex, has issued a warning that it will take at least a year for supplies to catch up with demand.

Manufacturers are likely to see further delays and disruption which are driving higher input costs and feeding through into higher inflation. Flex’s comments are significant as it has 100 sites in 30 countries and manufactures devices and electronics for companies such as Ford, Dyson, Ocado and HP.

According Flex’s Lynn Torrel, the company's chief procurement and supply chain officer, chip manufacturers have started to push back their forecasts for when the shortage will end, with a growing number now expecting shortages well into 2023.

Author
Neil Tyler

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