Chip shortage may last into 2023 as fixes slowly emerge | FierceElectronics
 
President Biden’s push to get congressional support for his $2.2 infrastructure package includes a strong push for bolstering domestic chip manufacturing with a $50 billion investment.
 
However, some question whether his plan will get bipartisan support and whether the financial boost could relieve the current chip shortage any time soon.  By several recent accounts, it appears the industry is settling in for chip shortages to last into 2023, especially for chips used by automakers, even as companies commit to expand chipmaking capacity.
The president has appeared several times in public forums on the issue, holding up props like a tiny semiconductor and a larger wafer in a Monday virtual summit with chipmakers and car company executives who have had to scale back vehicle production at plants for want of more chips.
 
He claimed bipartisan support for the CHIPS for America initiative which passed last year as part of the Defense act and calls for tax incentives for building domestic chip fabrication facilities. A letter he received said 23 U.S. Senators and 42 House members from both parties supported the CHIPS Act and how it helps the U.S. compete with China in chip research and development.
 
“China and the rest of the world are not waiting,” Biden said.
 
The meeting resonated with executives who attended the event, according to some accounts. Several executives interviewed by VLSI Analyst Dan Hutcheson after the meeting “are uniformly bullish about bi-partisan support for the industry,” Hutcheson told Fierce Electronics on Thursday. The bullish executives came from firms including TSMC, based in Taiwan, a leading producer of chips designed by American companies, including Apple, Hutcheson said.  TSMC alone produces more than half the world’s chips. The company recently said it will spend $100 billion over the next three years to increase capacity to meet demand.
Others who attended were leaders from GlobalFoundries, Micron Technology, NXP, Samsung and Intel.
 
In early April, GlobalFoundries CEO Tom Caulfield told CNBC that the world’s semiconductor supply could lag behind demand until 2022 or later.  GlobalFoundries is the third-largest foundry and plans to invest $1.4 billion in chip factories this year. In another example, Nvidia uses a variety of foundries to produce the chips it designs. On Tuesday, Nvidia CEO Jensen Huang told reporters he doubted the chip shortage “will be a real issue in two years…The industry recognizes this and will build out the necessary capacity.” Huang added he has “every confidence” that a high-performance AI chip that Nvidia is developing for autonomous vehicles called Atlan will be available for cars coming in 2025. “We’ll do whatever is necessary to do when the time comes,” he said. “A company of our scale and resources can surely adapt the supply and make [Atlan] available to customers that use it.”
 
Based on this information 2022 could also be a bad year for chip manufacturing in my opinion. 

Grey_Beard
I just read this morning in the WSJ that another factor is the current drought in Taiwan. Given the amount of water used to manufacture chips, this is a major concern. Taiwan is already rationing water for residents and other businesses but not for this industry which makes up about 65% of the World chip production with TSMC alone accounting for 4.5% of the country’s GDP. If the drought persists or if the typhoons, that supply half of the water to Taiwan, change course, this could be devastating to chip production at some point in the future. Climate change will rewrite how the World does everything.

Rationing water? Can you link me to the article please.
What type of excuse is that? They have the pacific ocean considered to be the biggest in size and depth. 🙄🤦

There is no such thing as climate change.
 
It's an excuse to control. And it seems many of you fall for it.
 
 

Between many supply issues covid and mining its a perfect storm to hurt the GPU market NVDA making a large jump in performance was just the rock that broke the camels back

Brad_Hawthorne

Grey_Beard

transdogmifier
There is no such thing as climate change.
 
It's an excuse to control. And it seems many of you fall for it.

Okay, I’ll bite.  Then what would you call it?  What are “they” trying to control?

I'm somewhere in between. It's a phrase that is a caricature of the actual definition. Just as "UFO" is associated (falsely) with aliens, "climate change" has a pavlov reaction that it's all humans. Climate change is a cycle of sun activity, volcanic activity and industrial emissions. The dumb thing about it is people attribute everything to human intervention and that it's terminal. People are ruled by fear, uncertainty and doubt. I'd prefer people be ruled by logic and critical thinking.