The chip shortage that greatly affected the production of big tech companies all over the world will continue to persist until the first half of 2023, according to the statement of STMicroelectronics CEO Jean-Marc Chery.
In an interview, Chery said that things will continue to improve by 2022, but “back to normal” won’t be happening until the second half of 2023.
With the continuous surge in demand from different industries utilizing chipsets, chip inventory will continue to be scarce and delays are still expected to happen in the following months.
The global chip shortage has been attributed to the shutdown of factories which halted the production capability of the manufacturers. This also resulted in some tech products’ increasing.
Jean-Marc has been the chief executive of STMicro since 2018, so his estimate should be pretty accurate.
The average pricing of the Franco-Italian company’s chipsets rose by 5% in 2021, but there will be further price increases expected by the end of the year and next year.
Only 70% of the total customer demand will be met by STMicroelectronics this year, but the executive hopes that it will rise to 85% to 90% in 2022 as they increase production capacity.