Lenovo Group, the world's largest personal computer maker said that a global chip shortfall will persist into next year's first half as it reported a 65% rise in second-quarter profit.
Lenovo says global chip shortage to persist into first half of next year (Photo: File)
Lenovo Group, the world’s largest personal computer maker said that a global chip shortfall will persist into next year’s first half as it reported a 65% rise in second-quarter profit on Thursday.
The company said that the shortage of chips was “creating delays in order fulfilment and considerable backlog orders across PCs, cellphones, and servers. Lenovo CEO and Chairman Yang Yuanqing told news agency Reuters that his earlier forecast of a scarcity lasting into the first half of 2022 remained unchanged.
Strong demand, particularly in the IT and electric car sectors, is driving the deficit, he said. Shares of the business plummeted as much as 5% after the results, reflecting market fears about the impact of the semiconductor crunch on global PC shipments.
Advertisement
EVENT
Saksham Bharat 2026
A multi-stakeholder dialogue on skilling gap in Cybersecurity, Data Resilience and AI — and the roadmap to a Saksham Bharat.
Infosec Reimagined 2026 is the premier information security summit where top leaders—CISOs, CROs, CIOs, CTOs and risk executives—converge to redefine cyber resilience.
Digital Senate is a premier conference uniting government leaders, technologists and innovators to share ideas, success stories and strategies on digital governance, public sector transformation, cybersecurity and emerging technologies in India.
CIO Prism unites forward-thinking technology leaders to exchange transformative insights, shape digital strategies, and foster innovation, empowering enterprises to excel in an era of rapid technological change.
Gartner said last month that softening anti-virus measures caused consumer and educational spending to shift away from PCs, while chip shortages hindered laptop shipments.
Earlier on Thursday, the company announced a $512 million profit for the third quarter ended September 30, up from $310 million a year ago.
Despite concerns over chip supply, Lenovo’s stock has surged more than 70% in a year, but this month the company cancelled its 10 billion yuan ($1.56 billion) Shanghai offering.
Tech Observer Desk at TechObserver.in is a team of technology reporters led by a senior editor who brings latest updates and developments from the world of technology.
India will chair the Common Criteria Development Board from April 2026, gaining influence over international IT security certification standards recognised by 38 countries.
