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ARM boss warns of Christmas chip crisis

by on03 November 2021

You have all been on Santa's naughty list

ARM boss Simon Segars warned that Christmas shoppers who have not already bought all their devices may not get them in time.

Simon Segars, chief executive of chip firm ARM, said the mismatch between supply and demand is "the most extreme" he has ever seen.

The "unprecedented" crisis won't be completely fixed by Christmas 2022 and in some cases the wait for chips was 60 weeks.

With just over 50 shopping days until Christmas, the clock is ticking and if you have not bought all your devices yet you could be out of luck.

Segars explained that the chip shortage was caused by a range of factors, including unprecedented demand for devices during the pandemic - as everyone rushed to find ways to communicate with their loved ones during lockdowns, and home-school their children.

This was coupled with a sudden surge in demand for cars, and geo-political tensions between Asia and the West, he added.

There was also the issue of 5G, stockpiling of chips because of US sanctions on Huawei and the small number of manufacturing plants, as factors in the crisis.

The Arm boss said the industry was spending $2 billion a week to add capacity but warned that "just building factories" was not enough.

The "complicated and expensive" process needed better collaboration across the supply chain, he said.

Last modified on 03 November 2021
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