IBM warns chips are down until 2023 - Mobile World Live

IBM warns chips are down until 2023

14 MAY 2021

IBM president Jim Whitehurst reportedly indicated a current chip shortage impacting production of smartphones could last for another two years, with the company readying alternative steps to meet demand.

Whitehurst told BBC News it would take time for the industry to add the necessary capacity to ease the current shortage, noting the impact spanned the broader consumer electronics sector in addition to smartphones.

The executive explained a surge in demand for consumer electronics spurred by the Covid-19 (coronavirus) pandemic played a part, with Huawei’s woes in the US also having a notable impact on supply.

Whitehurst told BBC News there is a “big lag” between the development of a technology and manufacturing of chips. To alleviate this, IBM is looking to reuse and extend the life of some technologies, along with accelerating investment in factories to boost capacity.

Other chip companies including Qualcomm and TSMC have also noted the impact of the shortage, though the US company expects a material improvement by the end of the year, with the Taiwanese business tipping the situation to persist into 2022.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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