Chip Crisis Expected to End By The End of 2021, Says Qualcomm CEO


Qualcomm: One of the most debated issues in the technology market recently is the global microchip crisis. Aggravated by the pandemic, which drastically changed the production model of industries and increased demand for parts, the problem should end soon, according to Cristiano Amon, a Brazilian who is the global CEO of Qualcomm.

The executive pointed out that Qualcomm in particular was less affected because of its scale. During this period, according to him, the company managed to guarantee investments from the suppliers, so that they would maintain their production capacity, and took advantage of the capacity to design other products.

Amon also said that the brand projected an action in the market to try to “drift” the problems: the same components were developed in two or three different factories. Actions like this should make the company able to meet all the demands already in the 2nd half of the year, according to him.

And despite saying that the crisis is representing a “moment of opportunity”, he confessed that he believed that some sectors of technology should continue to struggle in 2022.

Reasons for the Chip Crisis

Qualcomm’s chief executive also said in the interview that because it’s global, scarcity has “knocked on everyone’s door” in some way. Despite not citing, Apple, Samsung, Intel, Dell, HP and several others have spoken publicly about the issue, which has resulted in higher prices for the consumer.

The Brazilian explained that the forced change in the work regime (from in-person to home office) meant that many companies needed to discover, all of a sudden, how employees could have access to everything — in addition to changes in school services, services and doctors.

The movement increased the digitization of society, in addition to accelerating the multiplication of the amount of data being processed. “It was through technology that society continued to function in the coronavirus pandemic. And all of this resulted in an unbalanced increase between consumption and production [of chips],”’ he argued.

According to Amon, unexpected conditions such as car sales in the middle of a pandemic and the sanctions on Huawei in the US (forcing the allocation of semiconductors to other sectors) were also responsible for negatively impacting the planning of industries.

Finally, the CEO of Qualcomm said that this whole scenario marked a fact. “The importance of semiconductors in technology for society was quite clear.”