Semiconductor shortages are currently slowing down the manufacture of all electronic devices containing microchips. Ironically, this also affects machines that make microchips. The world’s largest chip manufacturers have reported this Intelin and TSMC:n under.
Before the start of the corona pandemic, delivery times for chip production machines were in the order of a few months. Now it can take up to 2-3 years to get a new chip machine. Delivery times for equipment already ordered have also dragged on, the Wall Street Journal writes.
The pandemic both increased demand for equipment and hampered component production. In addition, the growing need for microchips in the automotive industry has exacerbated the situation in the industry.
The chip industry is now in a stalemate where it should be able to meet increased demand by increasing production capacity. The equipment needed for production, on the other hand, also needs components. According to 9to5mac, the worst shortage right now is about the fairly simple power management components, not so much the processors or graphics cards.
Over the last two years, various assessments have been heard of the recovery of chip production as if by itself as the global situation normalizes.
Industry executives interviewed by the Wall Street Journal fear the market failure could last until 2024 or beyond. CEO of Intel Pat Gelsinger recently estimates that the market situation will level off in 2024 at the earliest. Just three months earlier, he believed the problems would ease during 2023.
“There is hopeful thinking that supply will meet demand by the end of 2022. I don’t see it happening, ”he says GlobalFoundriesCEO of the company Tom Caulfield WSJ: lle.
Some component manufacturers have already begun to prioritize chip manufacturing equipment manufacturers to get rid of bottlenecks in the industry. This is how it has worked, for example Microchip Technology. Managing director Ganesh Moorthy says the company is listening to the wishes of production equipment manufacturers in component production. If there is a severe shortage of any particular component, resources will be directed to their manufacture.
Chip manufacturers will, of course, build more production capacity if they have time. During the period 2020–2024, it is estimated that more than 90 new production plants will be started globally. However, the strong growth of the entire industry is putting additional pressure.
Last year, the industry’s sales exceeded $ 500 billion globally for the first time, and global revenue is expected to double by the end of the decade. Therefore, this is not necessarily just a temporary market disruption caused by the corona.