When will the microchip crisis end?

The semiconductor industry has been struggling for months to cope with demand. The automobile sector is being seriously affected by this problem. Global data shows smartphone and PC sales have slowed year-over-year, and this eases supply. However, manufacturer STMicroelectronics, one of the world’s largest chip firms, has an update on the crisis. This is the current situation and when they estimate that the problem we are experiencing will be resolved.

The demand for microchips, as we mentioned before, is declining year after year in the smartphone and computer sectors. And yes, this is allowing chipmakers, and other suppliers, to adjust the balance between production and demand. However, in other sectors such as car manufacturing, the situation is very different. In the automobile sector, demand is at record values. As we already know, this is what is forcing some manufacturers to reduce their production and others, like GM, to make incomplete cars.

The microchip crisis will continue, at least, until the year 2023

STMicroelectronics, one of the world’s leading chipmakers and a strong supplier of chips to the automotive industry, has an update on the situation. The company dedicated to semiconductors ensures that demand will continue to exceed production capacity, at least, until the next year 2023. That is to say, for the moment the problems of shortage of semiconductors are going to last for at least one more year.

And this update on the situation is very positive. Because, although some manufacturers considered that this situation should improve during the second half of this year, many others had made a worse forecast. Intel, another very important manufacturer of semiconductors worldwide, assures that this problem will continue until 2024.  And these indications from Intel have to do with the fact that the semiconductor industry is facing blockades in China, which affect the chain of supply and, ultimately, the production of equipment for the manufacture of semiconductors.


STMicroelectronics forecast that the crisis will end in 2023 when the demand decreases slightly and the chipmakers can cope with the volume of business they maintain. However, this company has also taken measures. They recently announced that they are about to open their new facilities in France to increase the production of semiconductors. And this position is strategic to help the European industry get back on track.


At the moment, several companies are the ones that have tried to make a forecast about when the microchip crisis will end. And not even between them coincide in the term, although all point to it being between 2023 and 2024. There is a difference of one year between the estimate given by some companies and that given by others. Meanwhile, the car industry is taking a hit because there aren’t enough cars to meet the demand that exists.

Elenor Kling

A tech lover and generally a car enthusiast who likes to do a lot of research and share knowledge.

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