Tuesday, October 4, 2022
HomeBusinessMicron CEO Sanjay Mehrotra warns the chip shortage is set to continue

Micron CEO Sanjay Mehrotra warns the chip shortage is set to continue

The fallout from the pandemic, Chinese factory shutdowns, and high oil prices mean that the cost of a PC remains higher than it should be, and if the words of Micron’s CEO Sanjay Mehrotra turn out to be true, some PC parts could soon cost even more than they do now.

Sanjay Mehrotra was interviewed by Fox Business (via wccftech) stating that “There are parts of the chip shortage that will continue to improve as we go through the calendar year 2022 and some parts of this will continue into 2023 as well. Of course, Micron continues to make the necessary investments to meet the demand growth that our customers are bringing to us.”

Micron is mostly known for its memory products including DRAM and NAND flash which are obviously key components in all PCs. If things like Covid related shutdowns continue on and off, then supply is indeed likely to be disrupted for the foreseeable future. The price of DDR5 memory is falling but it remains high compared to DDR4. Given that Micron is one of few DRAM manufacturers, it doesn’t bode well for pricing going forward.

Micron has also released a statement regarding its supply of neon gas, which is a key component in semiconductor manufacturing. The Company said “Micron has diversified sourcing for all of our noble gases, and our supply of neon is primarily sourced and originates from various suppliers across the European Union, United States and Asia”

Around 50% of neon comes from Ukraine which means that world neon production has been halved due to the Russian invasion. Micron states that its production should remain unaffected due to diversified supply and long-term agreements.

All of this goes to show that semiconductor supply shortages aren’t yet in the rear-view mirror and the prices of many PC components are likely to remain high, if not rise further due to rampant inflation worries, ongoing war and work from home related high demand.

- Advertisment -

Most Popular