Global Chip Shortage May Last A Few Years, Dell Technologies Founder Says

In an interview with Handelsblatt newspaper, the founder of Dell Technologies; Michael Dell, said that the ongoing shortage in chips needed for electronic devices may persist for a few years. It is no news that there has been a global shortage of chips which, as the day goes by, continues to be a challenge to manufacturers.

The global shortage in chips needed for the production of smartphones, computers and even cars can be blamed on the coronavirus pandemic, the increasing demand for electronic devices and sanctions against Chinese Technology companies by the U.S. Government.

“The shortage will probably continue for a few years. Even if chip factories are built all over the world it takes time”, Michael Dell; Founder of Dell Technologies told Handelsblatt newspaper in an interview.

Dell revealed that it is one of the many technology companies that rely on semiconductor makers. The company also revealed that its order volume for chips run into about $70 billion every year.

The founder, during his interview stressed that older and cheaper semiconductors are becoming scarcer than their newer counterparts. “We are talking, in particular about components that are in the one-dollar range and are used practically everywhere…But even newer technologies are not easy to come by”, he said.

The shortage in semiconductor chips has begun to take its toll on only on technology companies but on consumers. These chips are used in virtually everything that runs on electricity, from smartphones, cars, computers, toothbrushes, etc. What the global chip shortage means to the consumers is that they will have to pay more for items. Global companies such as Samsung, LG and businesses in the auto industry have begun to feel the impact of the shortage.

About two weeks ago, Chuck Robbins; Chief Executive Officer of networking giant company Cisco Systems, told BBC in an interview that the global chip shortage should last for about six months and get better twelve to eighteen months after that. He also stressed that with the continued expansion in technologies such as 5G, the Internet of Things (IoT), Cloud Computing and Artificial Intelligence, will continue to push the demand for semi-conductor chips higher.

With the continued rise in the demand of chips and the pandemic still ongoing, there might be reasons to believe Dell Technologies boss that the global chip shortage will last a few years.