Part shortages can persist through 2022, according to TSMC.

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In-demand electronics will be difficult to find for a while longer.

To address the shortage, the world’s largest contract chipmaker is growing investments this year to increase production and construct upgrades. TSMC has invested $8.8 billion in the first quarter and plans to spend about $30 billion by 2021. Even, it takes time to construct infrastructure to boost production, so we must wait.

Taiwan Semiconductor Manufacturing Company (TSMC) does not expect the current global chip shortage to be resolved anytime soon.

During a recent conference call, CEO C.C. Wei informed investors that demand remains strong. “By 2023, I hope to be able to provide more capacity to our customers. At that point, the supply chain tightness will begin to loosen slightly,” the executive added.

Wei’s sentiments are similar to those expressed by other big market players recently.

Colette Kress, CFO of Nvidia, said earlier this week that overall demand remains quite high and continues to outstrip supply, although channel inventories remain very low. “We anticipate that demand will continue to exceed supply for the majority of this year,” Kress said.

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According to Intel CEO Pat Gelsinger, semiconductor firms will take several short-term moves to better satisfy demand. “We do believe we have the ability to help,” Gelsinger said, adding, “I think it will be a couple of years before you are completely able to address it.” It just takes a few years to create capacity.”

Masthead courtesy Zapp2Photo

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