Ericsson CEO predicts chip shortage will continue until 2022

Ericsson CEO Borje Ekholm predicts that the global chip shortage will continue until 2022. This increases the possibility that the supplier will be affected. So far, Ericsson Always trying to mitigate the related impact.

Borje Ekholm pointed out at the company’s Ericsson UnBoxed event that so far, the chip shortage has had limited impact on Ericsson, and it is expected that the company will not be affected in any significant way in the short term.

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Borje Ekholm said that Ericsson began to promote the diversification of its supplier base about three years ago, which helped it cope with the current shortage and enabled it to “continue to supply customers as in the past.”

However, he admitted that the longer the chip shortage lasts, “the greater the risk we face.” Considering that “the preparation time to increase production capacity is very long,” Borje Ekholm predicts that the chip shortage will continue.

He said that with the development of digitization, the global demand for chips is also increasing, which makes it important to increase production capacity.