Shortages to Affect NVIDIA’s Supply Chain For Years, Says CEO

 

In an announcement that surprised almost nobody, but still sent shockwaves through the global electronics community, NVIDIA CEO Jensen Huang said he expects “demand to far exceed supply” of his company’s products, especially graphics cards, well into 2022.

“We don’t have any magic bullets in navigating the supply chain.”

Jensen Huang, CEO, NVIDIA

“We don’t have any magic bullets in navigating the supply chain,” Huang said. “We have the support of our suppliers. We’re fortunate that we’re multi-sourced and that our supply chain is diverse and our company is quite large so we have the support of a large ecosystem around us.”

NVIDIA released their most recent line of graphics cards, the GeForce 30 series, in September of 2020 and has had trouble keeping them in stock ever since.

They are not alone. Nintendo, Xbox, Sony, Toshiba, and Intel have all recently said they expect to feel the effect of the chip shortage in their production capabilities until late 2022 or early 2023.

Just as Nvidia isn’t the only player in the gaming sector feeling the crunch, the industry as a whole is not alone is suffering from the highly publicized chip shortage.

Automotive manufacturers are selling fewer cars and getting into the chip making business to help alleviate the shortage.

Huang’s statement aligns with our previous research around the chip shortage. It seems almost cliche at this point to remind businesses in the electronics supply chain that we still have a tough 18 months ahead of us, but we do. 

The course of action for firms that want to succeed in the challenging business environment that is our reality for the time being is better market intelligence. That means visibility that goes beyond “is it in stock at the distributor?” and gives businesses a top-to-bottom view of the entire electronics value chain. 

Supplyframe is here to help. Take a second to learn about how our DSI solutions can be deployed quickly and effectively and help your business win in 2022.

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Paul McNamara
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