Nvidia CEO expects chip shortage will extend into most of 2022

The chip shortage woes continue.

Image via Nvidia

After more than a year of supply struggles for electronics manufacturers, the ongoing chip shortage is expected to continue well into 2022, according to Nvidia CEO Jensen Huang in an interview with Yahoo Finance

Since the start of the COVID-19 pandemic, a significant shift toward home office computing partially created an unprecedented surge in chip demand from consumers. That surge contributed to a shortage that doesn’t look to have a solution coming within the next year. Huang believes that supply chains will continue to struggle through the coming year.

“I think that through the next year, demand is going to far exceed supply. We don’t have any magic bullets in navigating the supply chain,” said Huang.

Huang cites the rise in gaming PC and workstation PC setups as a major cause of the chip shortages. During the global shutdowns, many people turned to games to pass the time while in lockdown, inflating the prices of Intel and AMD CPUs while supply dropped. 

GPUs are exceptionally costly due to the rise of crypto markets, cryptocurrency mining, and scalpers using bots to buy them all up. Even buying one of the new Xbox or PlayStation consoles is still a struggle a year after their respective launches. 

The increased demand will sustain for a while, according to Huang. He believes it will take some time before “supply exceeds demand,” even after the chip shortage ends.

“I think these are permanent conditions, and we’re going to see new computers being built for quite a long time. People are building home offices, and you could see all of the implications.”

With Nvidia’s CEO and other industry leaders anticipating a more prolonged chip supply drought into 2022 and more people building workstations and home offices, gamers will likely struggle to get the latest hardware for the foreseeable future.