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IBM says chip shortage could last two years | IBM says chip shortage could last two years |
(6 months later) | |
The boss of the US tech giant IBM has said a computer chip shortage could last another two years. | The boss of the US tech giant IBM has said a computer chip shortage could last another two years. |
Its President Jim Whitehurst told the BBC it could be "a few years" before the situation improves. | Its President Jim Whitehurst told the BBC it could be "a few years" before the situation improves. |
Many firms have seen production delayed because of a lack of semiconductors, triggered by the pandemic. | Many firms have seen production delayed because of a lack of semiconductors, triggered by the pandemic. |
The shortage has been exacerbated by surging demand for TVs, phones and gaming consoles while consumers are stuck at home. | The shortage has been exacerbated by surging demand for TVs, phones and gaming consoles while consumers are stuck at home. |
Mr Whitehurst said on BBC World Business News: "There's just a big lag between from when a technology is developed and when [a fabrication plant] goes into construction and when chips come out". | Mr Whitehurst said on BBC World Business News: "There's just a big lag between from when a technology is developed and when [a fabrication plant] goes into construction and when chips come out". |
"So frankly, we are looking at couple of years… before we get enough incremental capacity online to alleviate all aspects of the chip shortage." | "So frankly, we are looking at couple of years… before we get enough incremental capacity online to alleviate all aspects of the chip shortage." |
IBM licenses its microprocessor technology to the world's biggest chip makers such as Intel, TSMC and Samsung. | IBM licenses its microprocessor technology to the world's biggest chip makers such as Intel, TSMC and Samsung. |
Cisco says computer chip shortage to last six months | Cisco says computer chip shortage to last six months |
How will 'chipageddon' affect you? | How will 'chipageddon' affect you? |
Mr Whitehurst added that the firm would have to look at alternative ways to meet consumer demand. | Mr Whitehurst added that the firm would have to look at alternative ways to meet consumer demand. |
"We're going to have to look at reusing, extending the life of certain types of computing technologies, as well as accelerating investment in these [fabricating plants], to be able to as quickly as possible get more capacity online," he said. | "We're going to have to look at reusing, extending the life of certain types of computing technologies, as well as accelerating investment in these [fabricating plants], to be able to as quickly as possible get more capacity online," he said. |
The shortage, which was heightened after many factories shut down at the height of the pandemic, has been exacerbated by surging demand for home computers, gaming consoles and smartphones. | The shortage, which was heightened after many factories shut down at the height of the pandemic, has been exacerbated by surging demand for home computers, gaming consoles and smartphones. |
Apple, the world's biggest buyer of semiconductors, was forced to delay the launch of its latest iPhone due to the shortage,. | Apple, the world's biggest buyer of semiconductors, was forced to delay the launch of its latest iPhone due to the shortage,. |
Mr Whitehurst is the latest tech boss to weigh in on the issue. | Mr Whitehurst is the latest tech boss to weigh in on the issue. |
The boss of networking giant Cisco, Chuck Robbins, told the BBC in April that he believed the shortage would last at least another six months. | The boss of networking giant Cisco, Chuck Robbins, told the BBC in April that he believed the shortage would last at least another six months. |
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The increase in demand for semiconductors during the pandemic surprised many, Mr Robbins says | The increase in demand for semiconductors during the pandemic surprised many, Mr Robbins says |
US President Joe Biden also sees the shortage as a long-term issue and used a White House summit with business leaders last month to urge them to make the country a world leader in computer chips. | US President Joe Biden also sees the shortage as a long-term issue and used a White House summit with business leaders last month to urge them to make the country a world leader in computer chips. |
Amid the trade and technology war with China, the White House has said it is "a top and immediate priority". | Amid the trade and technology war with China, the White House has said it is "a top and immediate priority". |
According to the US-based Semiconductor Industry Association, about 75% of global manufacturing capacity is in East Asia. | According to the US-based Semiconductor Industry Association, about 75% of global manufacturing capacity is in East Asia. |
Taiwan's TSMC and South Korea's Samsung are the dominant players. | Taiwan's TSMC and South Korea's Samsung are the dominant players. |
European politicians also want more chips made locally. | European politicians also want more chips made locally. |
Meanwhile, China has seen a huge growth in domestic demand for chips to power new technology, but has only a small share of global manufacturing capacity. | Meanwhile, China has seen a huge growth in domestic demand for chips to power new technology, but has only a small share of global manufacturing capacity. |
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