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How Long Will the Chip Shortage Last?

Semiconductor companies have few quick-fix options at their disposal, making it increasingly likely that the shortage will extend into 2022.

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How Long Will the Chip Shortage Last?
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There are few short-term fixes for the global chip shortage, and even the options that have faster turnaround times come with trade-offs, according to a Bain & Company analysis. For example, semiconductor manufacturers can increase their factory utilization to maximum capacity in order to boost output by a few percentage points, but then production throughput times will suffer, increasing from a typical three months to up to six months. Most of the available solutions to the shortage have lead times of at least nine months. That means the shortage is likely to continue into 2022 at least.

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