Semiconductor chip shortage: What Elon Musk say's

 The shortage of a semiconductor chip that prevents the production of products from cars and computers to consumables and brushes will go into 2022 and possibly more than that, says semiconductor company chief Marvell Technology.

“Currently, the whole market for semiconductors has risen simultaneously; I have been in the industry for 27 years, I have never seen that happen, ”Marvell chief executive Matt Murphy said during a CNBC Technology Executive Council event on Thursday. "If the business stays as usual, and everything is up and to the right, this will be a very painful time, including the 2022 season."

While several chip manufacturers have announced plans to expand the factory capacity, Murphy, who noted that his company has no assets and is working with contractors in its projects, said "that will not start until 2023 and 2024 - so there is a sad time."

That is the most pessimistic view of any of our peers working in the chip industry in Murphy, who have recently said that the shortage will be reduced next year as new factories open.

"We always go through a cycle of errors and downs, where the need goes beyond the transaction or vice versa," AMD CEO Lisa Su said Monday at a Code conference in Beverly Hills, California. "This time, it's different."

Su said that while he expects the first half of 2022 to be “strong,” the second half will be even more sour as production capacity is opened.

"It can take, you know, 18 to 24 months to install a new plant, and in some cases up to that point," Su said. "These funds started probably last year."

AMD rival Intel is one of the companies expected to double its production, announcing in March that it will invest $ 20 billion in two new chip factories in Arizona.

TSMC, a major producer of contractor semiconductors and working with companies including Marvell, is also building a $ 12 billion factory in Arizona. The company announced in April that it would invest $ 100 billion over the next three years to increase factory capacity.

“Large packages”

Murphy said the deficit could be remedied as the demand for certain products using the chip eventually declined.

“I think there is no way, in my opinion, that all parts of the electronics sector will sit up and to the right, tearing down the need for another 12 months; it doesn't make sense, ”said Murphy. “I think there is something to be given. And when it does, it has to unleash its full potential so that the entire industry can consume and ultimately meet the real need. ”

Declining demand could come from areas such as the personal computer market, said Murphy, citing Micron Technology's lower-than-expected sales guideline for its next quarter.

Micron Technology chief executive Sanjay Mehrotra told CNBC's "Mad Money" on Wednesday that while the needs of PC users are strong, some PC customers are unable to meet their needs because they do not have enough resources to build PCs. ”

More than 300 million computers were sold by 2020, according to market intelligence company IDC, up from 268 million by 2019.

That has led some analysts to show more than 400 million PC sales in the coming years, but it is a way of selling Murphy expressed doubts during the CNBC TEC event.

Finally, Murphy stated that he would expect to see “a huge package of items when all of this has been done.”

"If you look at how many masks or handkerchiefs or toilet paper flowing, there has been a panic, and there is a panic being bought from semiconductors right now," he said. "Sometimes, you order an order and it goes the other way."

The automotive industry is still struggling

Any exploitation of chip material can be accepted by the automotive industry, which is likely to be the most affected by the absence of semiconductors.

General Motors said on Friday that U.S. car sales in the third quarter dropped by more than 30% year-on-year as chip shortages disrupted production and reduced the list available to retailers.

Last month, car manufacturers shut down production of most of its North American plants again as a result of the shortage of semiconductor chips. That shortage has forced General Motors to move its chips found in its most popular and profitable cars, such as trucks in the country.

All in all, U.S. car sales It is expected to drop by at least 13% in the third quarter due to disrupted product deficits in chip shortages, according to industry estimates.

However, many car manufacturers have suggested that the problem be solved soon.

"The disruption of the semiconductor supply that affected our mass delivery in the third quarter is improving," Steve Carlisle, president of GM North America, said in a statement. “As we look forward to the fourth quarter, the continuous movement of vehicles stored in plants will continue to be released by retailers, re-production in high-end crossover and automotive areas, and anticipate a stable operating environment in the fall. ”

Tesla chief executive Elon Musk recently called the shortage of semiconductor chip a "temporary problem," saying "there are too many chip manufacturing plants being built and I think next year we will have some good energy."

Reviewing purchase

Murphy said the shortage of students doing certain courses alone has led to some speculation as it relates to the sale of goods.

"Even before the epidemic broke out," he said. "Chip companies actually have to take a different view now on supply chain, it's an important factor in how you organize your power, your relationships with your suppliers."

There is more willingness from consumers to pay for power ahead of time or to sign contracts to take or pay, which means the company will take the product from the supplier or pay a fine, Murphy said.

“We see this as a strategic shift, not just the past


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