Global chip shortfall is expected to alleviate in the second half of this year


Posted on 26 April 2022


For Illustration Purpose Only.

As demand for electronic gadgets softens despite mounting stocks, the global chip shortfall is expected to alleviate in the second half of this year. “Over the past few months, what we have seen is softening demand intersecting nicely with higher inventories,” Dale Gai, Director, semiconductor and components practice at Counterpoint Research stated. The inventory of 5G-related chipsets, such as mainstream application processors, power amplifiers, and RF transreceivers, has expanded, according to the company. According to Counterpoint, the supply gap for the most significant PC components such as power management ICs, Wi-Fi, and I/O interface IC has also shrunk across PCs and laptops. Wafer manufacturing expansion and continual supplier diversification have also helped to enhance component supply, according to Counterpoint. The research group is concerned, though, about the Chinese lockdowns, which could have a cascading impact. He predicted that the semiconductor scarcity will alleviate in late Q3 or early Q4 if the government can control the outbreak and assist key ecosystem actors in promptly turning the cycle.


Key Points


  • As demand for electronic gadgets softens despite mounting stocks, the global chip shortfall is expected to alleviate in the second half of this year.

  • The research group is concerned, though, about the Chinese lockdowns, which could have a cascading impact. He predicted that the semiconductor scarcity will alleviate in late Q3 or early Q4 if the government can control the outbreak and assist key ecosystem actors in promptly turning the cycle.


Follow Us On Google Newsstand: Click Here