Foxconn, the world’s leading electronics manufacturer, is expecting that the global computer chip shortage may last until the second quarter of 2022. Foxconn is the biggest supplier of many technology companies including Google and Microsoft. The shortage of PlayStation 5 and Xbox Series X consoles since release is largely due to the computer chip shortage, so supply of the consoles may also be limited until the middle of 2022.
The pandemic has affected a number of organizations including those that manufacture semiconductors. The pandemic caused factory shut downs, including many semiconductor fabrication plants, which caused limited production of graphics cards by companies such as AMD and Nvidia. Both the PlayStation 5 and Xbox Series X/S systems use AMD GPUs, putting the consoles at the end of a shortage ripple effect that may last awhile.
Foxconn Chairman Young Liu said that the tech manufacturer is likely to ship 10% fewer products than previously expected due to the computer chip shortage. Another report has reflected Foxconn’s expectation that the shortage will last until 2022. According to the report, the demand for computer chips is currently 10% to 30% greater than the output. Due to the limited supply and high demand for AMD and Nvidia graphics cards, the shortage will likely not be sorted out for another year.
The computer chip shortage has affected a number of companies, including Sony and Microsoft. Both companies recently joined up with 15 other organizations, including the US Chamber of Commerce, to seek help from the Biden Administration. The president responded by signing an executive order to launch a 100-day investigation into the supply of semiconductors. While the investigation may sort out some issues with the supply, it will likely take a substantial amount of time for the shortage to be completely sorted out.
Many reports are estimating the timeline for the semiconductor shortage, and although the shortage may last until the second quarter of 2022, it does not exactly mean that the shortage of PlayStation 5 and Xbox Series X/S consoles will be sorted out immediately.
Because semiconductors are used in a large range of electronics, the supply will be prioritized to the most necessary instruments. According to the letter sent to the Biden Administration, the shortage affects national security, meaning that products that keep the nation secure will be supplied before the consumer consoles. The limited stock of the PS5 and Xbox Series X/S may continue until 2022, but the executive order and pandemic restrictions slowly being lifted may speed up the supply of the consoles.
Source: Nikkei Asia