When Chip Shortage Will End?

A world-wide shortage of microchips has forced automakers to slow or stop production of many cars. That has pushed car prices to record highs in both the new and used markets. Analysts have consistently predicted that the problem would ease in 2022. But now, a major chip maker is warning that it could last into 2023.

How long will the chip shortage last?

The CEO of chipmaker STMicroelectronics, Jean-Marc Chery, said the shortage will likely last at least two years. “Things will improve in 2022 gradually,” Chery said, “but we will return to a normal situation … not before the first half of 2023.”

Will the chip shortage end?

Without a change, some experts say the chip shortage could last until late 2023. The White House's possible solution involves the Defense Production Act (DPA), which was put into place in 1950 during the Korean War.