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“We have no magic formula”: Nvidia CEO says global demand for chips will far exceed supply in 2022

Posted: Nov 16, 2021 18:34 GMT

The company’s expectations also coincide with the predictions of other manufacturing companies that report shortages and do not predict a change in the short term.

Nvidia CEO Jensen Huang expects the current global chip shortage to affect the company’s production line in the next two years.

Speaking to Yahoo Finance last week, Huang said he expects “demand to far exceed supply” in 2022, especially demand for graphics cards. Nvidia released its latest line of 30 series cards in October of last year, and it has experienced shortages since then.

“We have no magic formula to navigate the supply chain,” says the manager. “We have the support of our suppliers. We are fortunate to be multi-vendor and our supply chain is diverse and our company is quite large, so we have the support of a large ecosystem around us.”

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The company’s expectations also coincide with the predictions of other manufacturing companies that report shortages and do not predict a change in the short term. “We are in the worst part, each quarter of next year will improve, but there will be no balance between supply and demand until 2023,” said Intel CEO Pat Gelsinger in a recent interview with CNBC.

The chip shortage also continues to affect the production of video game consoles. Xbox boss Phil Spencer said the company is “working hard to bring them to market, but it is going to be a challenge that we will work on for quite some time.” Meanwhile, Sony has lowered its production targets for the current fiscal year by around one million PlayStation 5 consoles, to reflect and manage the continued constraints.

Why the chip shortage?

The chip crisis began at the height of the pandemic, when consumers, trapped in their homes due to sanitation restrictions, began purchasing everything from workstations and webcams to mobile devices and video game consoles. Due to the same limitations to prevent the spread of the virus, many companies also had to slow down their production processes.

With so many industries vying for the attention of the small number of chipmakers globally, the crisis was practically guaranteed. The demand has built up so much that when products are available, they are sold out in an instant.

“I think they are permanent conditions, we are going to see how new computers are built for quite some time. People are building home offices, and you can see all the implications,” Huang said.

About the author

Donna Miller

Donna is one of the oldest contributors of Gruntstuff and she has a unique perspective with regards to Science which makes her write news from the Science field. She aims to empower the readers with the delivery of apt factual analysis of various news pieces from Science. Donna has 3.5 years of experience in news-based content creation, and she is now an expert at it. She loves journalism, and that is the reason, she moved from a web content writer to a News writer, and she is loving it. She is a fun-loving woman who has very good connections with every team member. She makes the working environment cheerful which improves the team’s work productivity.

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