Home IT Info News Today Lite-on CEO expects chip scarcity to ease in 2H22

Lite-on CEO expects chip scarcity to ease in 2H22

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Lite-on CEO expects chip shortage to ease in 2H22

Anson Chiu, CEO of Lite-On Technology. Credit: DIGITIMES

The provide chain scarcity has not seen any aid in 2021, notably when it entered the third-quarter conventional digital peak season. Market demand has elevated, however total manufacturing capability has not.

Although an uneven hole in element provide has emerged, the stock for some parts has considerably elevated; nevertheless, the important thing wafer foundry manufacturing capability for mature processes akin to 28nm can’t be elevated.

The actual scarcity is with the semiconductor chip provide, which is caught and never straightforward to shortly resolve. In truth, the general provide chain scarcity is getting worse and more and more critical as a substitute of higher.

The COVID-19 pandemic resulted in plenty of early materials preparation, beginning on the finish of 2020. At the time, I used to be not involved concerning the materials scarcity, however now a lot of the ready supplies have already been used.

From the terminal utility perspective, probably the most critical materials scarcity within the first quarter was in notebooks (NB). In the second quarter, it was within the community communications subject. Now, the fabric scarcity for automotive use within the third quarter has led to an enormous suspension in manufacturing. Additionally, discovering supplies within the third quarter has been particularly tough.

In order to ensure the secure and regular provide of products and early signing of long-term contracts, upstream suppliers ought to put together to broaden their manufacturing capability sooner. This wave of semiconductor chip scarcity is anticipated to ease within the second half of 2022.

The surge in NB purchases introduced on by the stay-at-home economic system is anticipated to proceed, because the demand for hybrid places of work because of the brand new regular established through the pandemic will proceed into 2022.

Pandemic continues in Southeast Asia, as advantages of deferred demand stay to be seen

Our unique purpose was to manage the fabric hole inside 5%. Currently, it could nonetheless exceed this vary, however we’re working laborious to slim the provision hole.

Yet, it has additionally been noticed that the fabric scarcity has turn into so critical that some automakers have needed to droop manufacturing. Will the outlook for the second half of the 12 months be revised downward due to the scarcity? For now, it stays to be seen; nevertheless, the third quarter will outperform the second quarter, however might not be as optimistic as initially anticipated.

In the previous, working peaks had been largely within the third quarter. But because of the materials…



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