As companies continued to have many of their employees work from home, 2021 saw an influx of required home PCs – alongside server growth associated with the increased workload. Chip orders were fulfilled to meet the demand, but as the demand to work from home lessened, chipmaker inventories went from full to bursting.
Unfortunately, the same cannot be said about automotive chips. Due to the complexities of planning for EVs while still trying to support the chip requirements of “older” gas models, a production capacity issue has developed – neither is being developed at the needed rates.
While industries like automotive and even medical continue to flounder for the suitable chips required by their designs, a recent article from Fierce Electronics revealed that the potentially most significant chip inventory challenge is faced by AI app engineers, who are demanding more powerful GPUs than before to match their needs. Unfortunately, demand simply cannot be met by production. Regarding the supply and demand, the article states: “The demand is completely unprecedented. We’ve not seen this advancement with so much technology at one time… It can’t happen as fast you’d like.”
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