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Arm CEO Warns of 'Extreme' Gap Between Supply and Demand | Chip Shortage Could Cause a Disappointing Christmas

Urian B., Tech Times

(Photo : Image from Unsplash Website) Arm CEO Warns of ‘Extreme’ Gap Between Supply and Demand | Chip Shortage Could Cause a Disappointing Christmas

Arm CEO warns about “extreme” gap between both the supply and the demand of upcoming chips. The ongoing chip shortage could actually cause a very disappointing Christmas should holiday demands not be met.

Arm CEO Warns of Delays

According to the story by Apple Insider, backing up certain reports from all across the tech industry, Arm notes that if a certain buyer has not already put in an order for their devices, they might not be able to get them in time for Christmas. This means that those who are just putting in order might not be met in time for Christmas.

As the delays for chip delivery increase while the whole global shortage starts to worsen, Simon Segars, the Arm CEO, notes that the gap between supply and demand is actually “the most extreme” that he has ever seen. This is when compared to previous “chip shortages” that have been notably far from the current situation.

Christmas Delays Expected

Segars reportedly told the Web Summit in Lisbon, as per BBC News, that this is actually an “unprecedented” crisis and will not be completely fixed not just in time for the Christmas of 2021 but also potentially the Christmas of 2022. Sadly, with the estimations as of the moment, the global chip shortage might not be over in 2022.

Segar also noted that they might still be disappointed even if buyers have bought all their devices yet. The Arm CEO notes that it has never actually been like this before. As of the moment, Arm is not manufacturing processors. A previous report on the global chip shortage lasting 2023 states that the demand for PCs could “slightly soften” in the upcoming years.

Global Chip Shortage

Apple, however, already has an architecture license which would mean that the company can process designs that are using Arm technology. The architecture license for Arm technology covers a range of options, whether for the said iPhone or even for Apple Silicon.

Segar’s comments are now in line with some similar remarks that come from the likes of Intel. Pat Gelsinger, the CEO of Intel, also gave a statement back in January of 2021 regarding the global chip shortage. 

Read Also: Global Chip Shortage to Be Answered by Sony and TSMC’s New Plant in Japan? Would This Affect Relationship with Apple?

Pat Gelsinger on the Global Chip Shortage

According to Pat Gelsinger, it was stated that he did not expect the chip industry to be back to a healthy supply-demand situation up until the year 2023. It was noted that he now thinks that it will still worsen before it gets better for many industries.

Based on the currently ongoing supply chain monitoring and continued reinforcement reporting coming from Inside China, the publication AppleInsider, suggests buyers make early purchases. This is to be for the upcoming holiday season in all categories, including toys, clothing, games, electronics, and more.

Related Article: Chip Shortage is Not the Only Reason why Apple, Facebook, Google, Tesla, and MORE are Designing their Semiconductors

This article is owned by Tech Times

Written by Urian B.

ⓒ 2021 All rights reserved. Do not reproduce without permission.

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