FeaturesChipset shortage expected to last for years – Michael Dell

Dell also says the crisis has affected the manufacture of small and large-value components, many of which are present in various devices.
13 May, 20215 min
Chipset shortage expected to last for years - Michael Dell

The global crisis is hitting even hardware production worldwide. Even the Galaxy A line of Samsung phones has been affected by the shortage of resources and today the founder of Dell decided to comment on it, revealing pessimistic prospects regarding the chip market, stating that the crisis should last for years.

The statement was given by Michael Dell in an interview with German Handelsblatt. Contrary to everyone’s expectation on the topic, who expected a recovery in the economy by 2022, Dell said the situation should last for a few more years and the crisis was only exacerbated by the coronavirus pandemic.

“It would be great if a chip factory were built in Germany,”

“because the closer they are to our production facilities, the better.”

Michael Dell – (Founder and CEO of Dell Technologies)

The founder said the crisis was caused both by semiconductor factories that closed and slowed down during the pandemic, but also by the high demand for electronic devices on behalf of the home office that many students and professionals adopted during this period.

In addition, Dell said the trade war between China and the United States was also responsible for increasing the price of these components, mainly because of the sanctions. One of the most affected in this regard was Huawei, which was directly targeted by American trade blockades and even abandoned the production of incoming smartphones.

Still speaking from China, the founder of Dell says that there is a great drought in the region, which caused the government to transfer the water supply from industries to the population, which has hampered chip production.

Dell also says the crisis has affected the manufacture of small and large-value components, many of which are present in various devices. In the interview it was also revealed that Dell paid higher than normal amounts for these components and this increase in prices may reflect on the final price of the products if the situation persists.

In the interview, the executive also said that even if more semiconductor factories are built the shortage should continue, as demand continues to increase worldwide.

Dell is currently one of the largest customers of many semiconductor suppliers in various regions of the world with annual orders totaling approximately $70 billion.

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