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Dell's Chief Projects Semiconductor Chip Crunch To Extend For Multiple Years: Reuters

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Dell's Chief Projects Semiconductor Chip Crunch To Extend For Multiple Years: Reuters
  • Dell Technologies Inc’s (NYSE: DELL) Michael S. Dell expects the semiconductor chip crisis to extend for several years despite the construction of global factories, Reuters reports based on a statement to Germany’s Handelsblatt newspaper.
  • The crisis will loom for older and cheaper semiconductors, especially those available at the one-dollar range used practically everywhere. He also expressed concerns over the availability of newer technologies.
  • The pandemic-induced demand surge for electronic gadgets triggered a chip crisis for items ranging from cars to computers and smartphones.
  • Dell has to pay a premium to secure supply despite accounting for an annual order volume of $70 billion.
  • Intel Corp (NASDAQ: INTC) and Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) also estimate the crisis to extend beyond 2021
  • Other companies expressing concerns over the crisis include Qualcomm Inc (NASDAQ: QCOMfor its smartphone and gadget processor chips, Germany’s Robert Bosch GmbH, AutoNation Inc (NYSE: ANdue to the lack of crisis resolution.
  • Price action: DELL shares closed lower by 1.37% at $99.68 on Monday.
 

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