Chip Shortage And Higher Prices Set to Continue

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The situation around chip shortages and higher prices will not go away.

With a variety of ongoing challenges, even with signs may ease from 2022 onwards, the shortage will not stop growing, thanks to many factors. The pandemic, among other issues such as supply-side problems, rising logistics prices and the pure demand for chips have caused hold-ups.

While Gartner’s forecast shows a 27% increase in the semiconductor industry, Ben Lee, senior analyst at Gartner, explained that the expected easing in 2022 will not lead to a fall in absolute prices, but will help to slow and increase the growth rate.

He continued: “In terms of the chip shortage, [prices will be] not as high before … or flat, or slightly decreasing. So far we don’t see that any sign that we’re going to see [a] crash. The whole is getting up, the price, not only semiconductor but also for everything. Logistic and transportation fee, or the crude oil fee … it’s a kind of inflation.”

For more information, read the original story in ZDNet.

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