The shortage of computer chips plaguing industries around the world and helping to fuel inflation could last another two years, the boss of IBM has said.
With the global car industry estimated to lose $110bn this year thanks to the chip shortage, IBM’s president, Jim Whitehurst, told the BBC on Friday that the tech industry was struggling to keep up with demand brought on by the reopening of the world economy.
Some factories were forced to close when the pandemic first struck in 2020. The backlog in production was compounded by soaring demand for chips from a boom in sales of laptops, game consoles and mobile phones as people were forced into lockdown.
“There’s just a big lag between from when a technology is developed and when [a fabrication plant] goes into construction and when chips come out,” Whitehurst told BBC world business news.
“So frankly, we are looking at couple of years … before we get enough incremental…