The global chip shortage may last until 2023

The global chip shortage has lasted for nearly a year, and for many customers, the problem is exacerbating. As the delay has become longer, sales have also fallen.

 

The US$464 billion semiconductor industry has been unable to keep up, resulting in the loss of revenue in all industries. The pain is spreading from the initially affected companies—such as automakers and home appliance manufacturers—to other product manufacturers, such as medical devices and tobacco. Conte Point Research, a US company that tracks mobile phone shipments, said that due to chip issues, the smartphone industry grew by only 6% year-on-year, which was only half of the initial forecast earlier this year.

 

The waiting time for chip delivery continues to extend, exceeding the normal threshold of 9 to 12 weeks. According to the American Heiner Financial Group, this summer, this wait lasted an average of 19 weeks. As of October, this number has swelled to 22 weeks. According to the company, the most scarce components have longer waiting times: 25 weeks for power management components, and 38 weeks for microcontrollers required by the automotive industry.

 

It was thought six months ago that the chip shortage would begin to ease by this time. But now the shortage may continue until 2023.

 

The auto industry, which was hit hard by chip shortages in the early days, has the biggest call for increased supply. TSMC, the world’s largest contract chip maker, has increased its automotive chip production by 60% this year, but as factories continue to close and estimated losses increase, it is difficult for automakers to recover.

 

Even companies that are considered to have a well-developed supply chain-such as Apple and Tesla-have pointed out that there are challenges in meeting customer needs, because the lack of key components hinders production and also hinders revenue growth. Other companies have also begun to warn investors about the long-term impact.

 

Therefore, the shortage of chips in the automotive industry is not just a problem for the automotive industry, it has become a comprehensive industry problem.