Chuck Robbins, Cisco’s Chief Executive Officer, believes that the current computer chip shortage will persist throughout the year.
In an interview with the BBC on this issue, he said, “I think in the short term there are six more months left. Providers are building more capacity. Over the next 12 to 18 years, it will get better and better in months.”
According to the report, in the early days of the pandemic, many companies cut orders for chips, expecting demand to decline. As a result, the supplier also reduced production.
But the exact opposite happened. Demand for consumer electronics actually surged during the epidemic.
The shortage is mostly due to the delay in semiconductor production in Corona 19, but other factors have also affected. For example, in areas such as 5G, cloud computing, IoT and AI, the surge in demand due to recent technological advances is only exacerbating the problem.
“It’s a big deal right now,” says Robbins, because semiconductors go into pretty much everything.
Among several companies working to address the chip shortage, Intel recently announced a $20 billion plan to expand production, including the establishment of two new factories in Arizona.