Friday, September 17, 2021

business

Global chip shortage expected to last until 2022


The worldwide microchip shortage that is driving up the price of computers and other devices will last through 2021, according to Gartner, Inc.

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The research firm expects semiconductors (microchips) ­to recover to normal levels by the second quarter of 2022.

The Federation of Thai Industries (FTI) has admitted that Thai manufacturers – especially in the automotive industry – face production impacts from the shortage.

“The semiconductor shortage will severely disrupt the supply chain and will constrain the production of many electronic equipment types in 2021. Foundries are increasing wafer prices, and in turn, chip companies are increasing device prices,” said Kanishka Chauhan, principal research analyst at Gartner.

Meanwhile, undersupply of most categories of devices is expected to persist until the second quarter of 2022.

Gartner analysts recommend that manufacturers dependent on microchips take four actions to cut risk and revenue loss during the global chip shortage:

● Extend supply chain visibility beyond the supplier to the silicon level, which will be critical in projecting supply constraints and projecting when the crisis will improve.

● Partner with other manufacturers to approach chip foundries as a combined entity to gain some leverage, or pre-invest in the chip supply chain and/or foundries to guarantee long-term supply.

● Track leading indicators such as capital investments, inventory index and semiconductor industry revenue growth projections as an early indicator of inventory situations.

● Diversify supplier base.

Published : May 14, 2021

By : The Nation