GEORGE TOWN – The global supply deficit of semiconductor chips is expected to continue until the end of 2024 following the shortage which was triggered during the Covid-19 pandemic.
Speaking to the press during the Semicon Southeast Asia opening press conference held at Setia SPICE today, Semi Global president and CEO Ajit Manocha described the ongoing issue as complex, saying that the recovery will have to start by addressing the toolmakers of these chips.
“Now that the problem (with the chip shortage) has started, we are faced with a bigger problem where toolmakers need chips to help grow their capacity.
“They need chips to make more chips.
“What we are doing to help at Semi is to try to bring the entire value chain together, to create awareness, to encourage information sharing where we can be transparent with each other so the problem can be solved.
“This will keep people moving forward with what they need,” he said.
On top of the pressing issue, Ajit pointed out the unsettled Russo-Ukrainian war is adding “more fuel to the fire” due to materials needed from Ukraine, such as neon and palladium, among others, which cannot be sourced.
As such, Ajit opined that there is currently no backup plan from the industry, any backup nevertheless will take months to kick in.
However, as more companies increase their capacity, he says the industry will see a lot of balancing acts.
“As of now, the demand is going through a corrective phase as electronic companies are starting to realise that the lead time for chips is at seven months.
Semiconductor chips sales grew by 6.5% in 2020.
This rapid growth continued through 2021, and in February, the total sales of chips worldwide were worth US$52.5 billion (RM230.85 billion), up 32% year-on-year.
“This is the most exciting time in the industry’s history.
“We witnessed unprecedented challenges with the Covid-19 pandemic, but the semiconductor industry has coped well and shown strong growth.
“The most important lesson from the pandemic has been how crucial semiconductors are to all facets of lives,” he said during his opening speech.
Semicon Southeast Asia 2022 is the region’s premier gathering of the semiconductor and microelectronics industry and has opened its doors for three days to encourage regional industry engagement.
Entitled Forward as One - Building a Resilient and Sustainable Electronics Supply Chain in Southeast Asia, the event held from June 21 to 23 will feature highlights that include SMART & Sustainable Manufacturing Tour, exclusive tours for international delegates to advanced factories in Penang’s Batu Kawan Industrial Park and special Industry VIP Networking at Khoo Kongsi in George Town.
It expects to connect semiconductor manufacturing equipment companies, private and public partners and other key industry stakeholders to explore new collaboration and growth opportunities. – The Vibes, June 21, 2022.
.jpg)
_director_Datuk_M._Kumar.jpg)
