‘The end of the semiconductor shortage is in sight’

The end of the semiconductor shortage is now much closer than it was before, according to leading industry analysts at consultancy Deloitte.

Deloitte Consulting had previously predicted the shortage would last throughout 2023.

The chip industry has now boosted capital spending and production from new factories is starting to come on line.

In addition, an expected slowdown in the world economy and fears of inflation have driven stocks down, with buyers and consumer now more cautious about purchases of devices requiring semiconductors.

The surprising claim has been made by Deloitte Consulting principals Chris Richard and Brandon Kulik in an interview with Silicon Valley tech publication Venturebeat.

But it is at odds with a prediction by Intel CEO Pat Gelsinger who said recently that he expected chip shortages to last until 2024, as a lack of manufacturing tools was holding back an increase in production.

The forecast comes as speakers at last week’s Digital Signage Summit Europe complained that pro AV systems shortages were still particularly acute in media players, even if there was now an impending glut in the supply of large format displays. Shortages were forcing suppliers to hold higher levels of stock and preventing desired levels of standardisation at end customers, requiring flexibility in brands installed.

Elsewhere, the impact of shortages has been accelerating the adoption of software-based audio systems, according to a briefing by Audinate at InfoComm. The audio networking company said then that lower-volume industries like Pro AV had been challenged by the allocation of chips to larger volume clients in industries such as consumer electronics, automotive and the military.

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