China’s Lenovo says global chip shortage to persist as profit jumps

SHANGHAI (Reuters) – China’s Lenovo Group, the world’s biggest maker of personal computers, said that a global chip shortage would persist into the first half of next year as it reported a 65% rise in second-quarter profit on Thursday.

The company said it was able to outgrow the market by securing more supply of components than its peers, but acknowledged that a dearth of chips was “causing delays in order fulfilment and significant back-log orders across PCs, smartphones, and servers.”

CEO and Chairman Yang Yuanqing told Reuters in an interview that his earlier prediction that the shortage will remain unresolved at least until the first half of 2022 remained unchanged.