The global chip shortage that is hindering production forecasts of giant companies like Apple and Volkswagen is here to stay until the first half of 2023, the chief executive of STMicroelectronics said.
“Things will improve in 2022 gradually, but we will return to a normal situation… not before the first half of 2023,” Jean-Marc Chery.
By “normal situation”, Chery said he meant regular chip inventory levels and average delays to replenish components of about three months.
The chip shortage, which stems from a boom in demand from a wide range of industries, is stimulating prices, said Chery, who has led the Franco-Italian chipmaker since 2018.
The average price of STMicro‘s chips has increased by 5% in 2021 from a year ago, he said.
The Geneva-based group will only be able to meet 70% of total customer demand this year, Chery said. That level will be brought to 85-90% next year by investing in production capacity, he added.
The company forecast third-quarter sales of $3.2 billion, higher than market estimates of $3.08 billion. The Geneva-based company’s quarterly net revenue rose to $2.99 billion from $2.09 billion a year earlier, beating analysts’ estimates of $2.89 billion, according to IBES data from Refinitiv.