Wednesday, August 4, 2021

Despite Chip Shortage, Chip Innovation Is Booming

Must Read

WHO recommends masks — even for vaccinated people — because of delta variant

As the highly contagious delta variant of the coronavirus gained traction around the world, the World Health Organization urged vaccinated people to continue to wear masks...

‘Freaky bad accident’ could derail Hawks

Trae Young hopes to play through pain. The Hawks point guard suffered a right ankle sprain in the...

U.S. Carries Out Airstrikes in Iraq and Syria

WASHINGTON — The United States carried out airstrikes early Monday morning in Iraq and Syria against two Iranian-backed...

[ad_1]

“It’s a bloody miracle,” said Jim Keller, a veteran chip designer whose résumé includes stints at Apple, Tesla and Intel and who now works at the A.I. chip start-up Tenstorrent. “Ten years ago you couldn’t do a hardware start-up.”

The trends are not necessarily good news for chip customers, at least for the short term. Scarce supplies of many chips have manufacturers scrambling to increase production, and are adding to worries in Washington about reliance on foreign suppliers. Extra demand could extend the shortages, which are already expected to last into 2022.

High demand was evident in earnings for chip companies last quarter, which ended in March. Revenue grew 27 percent, for example, at NXP Semiconductors, a big maker of auto, communications and industrial chips, even though it temporarily closed two Texas factories because of a cold snap.

The industry has historically been notorious for booms and busts, usually driven by purchasing swings for particular products like PCs and smartphones. Global chip revenue slumped 12 percent in 2019 before bouncing back with 10 percent growth last year, according to estimates from Gartner, a research firm.

But there is widening optimism that the cycles should moderate because chips are now used in so many things. Philip Gallagher, chief executive of the big electronics distributor Avnet, cited examples like sensors to track dairy cows, the flow of beer taps and utility pipes, and the temperature of produce. And the number of chips in mainstay products like cars and smartphones keeps rising, he and other executives say.

“This is a lasting growth cycle, not a short spike,” said Kurt Sievers, NXP’s chief executive.

A longtime industry watcher, Handel Jones, who heads the consultancy International Business Strategies, sees total chip revenues rising steadily to $1.2 trillion by 2030 from roughly $500 billion this year.

[ad_2]

Source link

- Advertisement -
- Advertisement -

Latest News

WHO recommends masks — even for vaccinated people — because of delta variant

As the highly contagious delta variant of the coronavirus gained traction around the world, the World Health Organization urged vaccinated people to continue to wear masks...

‘Freaky bad accident’ could derail Hawks

Trae Young hopes to play through pain. The Hawks point guard suffered a right ankle sprain in the third quarter of Atlanta’s Game...

U.S. Carries Out Airstrikes in Iraq and Syria

WASHINGTON — The United States carried out airstrikes early Monday morning in Iraq and Syria against two Iranian-backed militias that the Pentagon said...

Kristen Schaal enters ‘The Mysterious Benedict Society’

Comedy veteran Kristen Schaal had a new experience in “The Mysterious Benedict Society.” “This is the first time I’ve done something where I have...

Are Black Creators Really on ‘Strike’ From TikTok?

Black creators’ concerns run deeper than simply obtaining dance credits or more brand deals. “We are being exploited, and that’s the core issue...
- Advertisement -

More Articles Like This

- Advertisement -