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Chip shortages could affect the tech world well into the second half of 2022

Apple's chip supplier Foxconn has predicted that the chip shortage could last until the second half of 2022.
By Sanuj Bhatia November 15, 2021, 6:03 am

Chip shortage, Chip shortage, Chip shortage. If you're sick of hearing this phrase every time you go out to buy a smartphone, tablet, laptop, or even a car, get ready to hear it more. According to iPhone supplier Foxconn, the ongoing chip shortage could last till the second half of 2022, The Wall Street Journal has reported.

Foxconn raised concerns regarding the chip shortage during an internal conference call. Even though Foxconn has met its revenue estimate, the company has said that it will "wait and see" whether the chip shortage will worsen or not. The company has estimated its Q4, 2022 revenue could drop if the shortage continues. In a statement to Reuters, Foxconn Chairman Liu said, "Regarding next year's prospects, we will be relatively cautious in our outlook."


Apple, so far, has not been as strongly impacted by the chip shortage as some of the other companies. The company had a strong quarter, but now, it seems that the chip shortage is set to affect iPhone, iPad, Apple Watch, and Mac availability as well. The company lost $6 billion last quarter due to chip shortage, but it now it expects the impact to be more significant for the holiday season.

Other chip companies are planning to move a part of their production to China, such as Intel, but President Joe Bidden's administration has blocked their move. The companies are now patiently waiting for the CHIPs bill to become an Act and infuse $52 billion, which could solve both short-term and long-term chip shortages.

Via: The Wall Street Journal, MacRumors, Reuters


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