Nokia CEO Lundmark Warns About Chip Shortages to Telecom

Amid worsening situation of the COVID-19 pandemic, many fear a global shortage in semiconductor chips. Nokia's CEO Pekka Lundmark said that even though it is yet to affect anyone, the shortages are not impossible.

Nokia's Warning about Chip Shortages

Lundmark said that a global shortage of semiconductor chips is yet to have a material impact on Nokia. However, the Finnish telecom firm has had to wait longer for supplies, sometimes several months.

Incidentally, the shortage has hit the automakers discriminately. Now, its effects are spreading to other industries as well. The uncertainty that comes with the COVID-19 and a surge in it has made companies to panic buy. This panic buying has further burdened the supply, decimating the capacity and driving up prices.

Lundmark told Reuters, "it would be naive for anyone to say that this would not be a serious shortage". He further warned that this shortage will continue for another year or two.

The impact of the shortage is limited so far, the telecom company said. Incidentally, it posted better-than-expected quarterly results on Thursday. Furthermore, it said that the full-year forecast included the semiconductor situation.

Lundmark further said that Nokia was in touch with suppliers on a daily basis. He also expressed positivity regarding the whole situation in Nokia's context. Lundmark stated that the company is "important to the suppliers".