Chip shortages will worry the world economy for two more years

The global chip shortage, which is crushing the automotive industry, as well as manufacturers of mobile phones or other electronic devices, is not due to end until mid-2023. This is what the head of one of the world’s leading manufacturers of this important component thinks.

“It will start to improve gradually over the next year. However, we will not return to a normal situation until the first half of 2023,” Jean-Marc Chery, managing director of STMicroelectronics, said in an interview with Reuters.

In a normal situation, Chery was referring to a standard stock of chips and an average delay of no more than three months to replenish components. According to Chery, the company he runs, which is based in Geneva, Switzerland, will only be able to meet about 70 percent of demand this year. Next year, this percentage should rise to 85 to 90 as STMicroelectronics invests in increasing production capacity.

The explosive demand for chips has already led to an increase in theirs and further increases are due in the second half of this year. “We are facing massive orders for these components, the world has changed significantly in this regard,” added Jean-Marc Chery.

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